THE Kareela shopping centre in Sydney's southern suburb was snapped by a private investment group, Dan Bros Nominees last week for $22.6 million.
Based on a net income of $1,382,000 per annum, the sale reflects an initial yield prior to acquisition costs of 6.12% or $5,444 per sqm.
Set on a site area of 12,921 sqm, at the corner of
Kareela comprises a 3,000 sqm Coles Supermarket leased until 2017 with options, together with 17 fully leased specialty shops and provides a total GLA of 4,151.5 Sqm. The centre also provides on-site parking for 167 cars.
Selling agent Jones Lang LaSalle’s head of retail investments of Australia Simon Rooney said the Kareela transaction follows the recent sale by Transputa of the Dee Why Plaza Shopping Centre as part of an $85 million portfolio sale to a
The centre, located at Oakes Avenue Dee Why, comprised a Woolworths supermarket and 10 specialties and an office component comprising a GLA of 4,609.7 sqm, occupied a site area of 14,720sqm, with onsite parking for 350 cars.
While the exact sale price was undisclosed, the sale was expected to reflect a yield in the vicinity of 5%.
In addition to the Kareela and Dee Why sales, Ashmore Plaza on the Gold Coast was sold just last week for $16.85 million at 6.07% to the Brisbane based Mok family and Mirvac sold Bundaberg Plaza for $7.5 million to the Adelaide based private investor Nick Dimauro at 7.20%.
“The significant and unabated investor demand and general lack of supply in the regional and sub regional markets, is forcing institutional investors not only off shore, but as new entries into the neighbourhood sector, competing with the traditional private investors and consequently leading to firming sale yields.
“While it is a general view that we may have reached the top end of the cycle in the regional and sub regional retail sector, the neighbourhood market may be looking at a general re rating and lead to increased market activity, as owners look to take advantage and unlock value,” he added.
Australian Property Journal
