Demand for suburban shopping centres is gathering pace as investors scramble to get a foothold into higher yielding assets as interest rates have been kept at a record low of 1.50 per ent by the Reserve Bank.
According to economists at CommSec, the Reserve Bank of ‘s “neutral stance” means rate hikes are as likely as rate cuts in coming months.
This will make bricks and mortar assets, with regular rents coming in, that much more attractive, according to property experts.
One of the latest offerings is the Coles-anchored neighbourhood shopping centre near the NSW government’s Western Sydney priority growth area, which will bring in new residents.
The marketing of Chipping Norton’s Market Plaza Shopping Centre, by LJ Hooker Commercial Sydney, which includes an ANZ Bank branch along with 17 other specialty tenants covering health and dining services, comes as Sydney experienced a slowdown in the availability of retail listings, with the value of sales dropping 17 per cent last year following a highly-active 2015.
Market Plaza Shopping Centre is fully-tenanted with expansion potential. No price was disclosed as it is an expression-of-interest campaign.
LJ Hooker Commercial Sydney directors Steven Kruyer??? and James Griffiths say demand is expected to come from a range of investors from overseas and domestic.
Mr Kruyer said Western Sydney’s current and forecast future growth positioned well-tenanted neighbourhood centres as sought-after investment opportunities.
“Investor demand and inquiry for local suburban shopping centres has reached new levels over the past 12 months, driving yields tighter and pushing values higher,” Mr Kruyer said.
“This is especially true for well-leased assets in Sydney’s south-west, where the state government’s growth strategies encourage increased residential dwelling construction, higher density and stronger population growth.
“Market Plaza Shopping Centre is a modern retail asset with profitable tenants that will attract significant interest from investors who have been starved of retail opportunities in the past 12 months.”
Mr Kruyer said the proximity to one of the state government’s growth precincts “further strengthens the appeal of Market Plaza”.
The full-line Coles supermarket has a lease until 2027 and covers 2800 square metres, being more than half the centre.Continue Reading →