Blue-chip Windsor retail asset generates investor contest

16 January 2019

Holdmark Property Group has bought Windsor Marketplace from Centuria Capital for $22.6 million, following a hotly contested expressions-of-interest campaign.

Local, interstate and offshore investors vied for the opportunity to purchase the 5,326sq m neighborhood shopping centre in Sydney’s north west, which is anchored by a Woolworths Supermarket, BWS and MyHealth Medical Centre.

Steven Lerche and Andrew Palmer of Savills Retail Investments, in conjunction with Stonebridge Property Group’s Jonathan Fox and Philip Gartland, brokered the deal for the shopping centre on a tight passing yield of 6.49 percent.

The Kable Street centre, which underwent a full redevelopment in 2011 and includes the freestanding and separately titled MyHealth Medical Centre, is 98.5 percent leased. It generates an estimated fully leased income of $1.5 million per annum, and has a Weighted Average Lease Expiry (WALE) of 11.4 years.

“Given the lack of quality neighbourhood shopping centres that are formally offered to the market within the Sydney metropolitan area, we received significant interest from prospective buyers,” Mr Palmer said.

“The buyer was attracted to the shopping centre’s excellent income security, with 79 percent of gross lettable area leased to anchor tenants Woolworths and BWS until 2033.”

Woolworths is complemented by nine specialty shops, including two kiosks and one ATM.

“Multiple value-add opportunities exist, with the ability to on-sell the separately titled MyHealth Medical Centre property, which has recently signed a new 10-year lease, plus the potential to subdivide and on-sell or rent out the freestanding residential cottage fronting Baker Street,” Mr Fox said.

Located in the thriving Hawkesbury region, the site is approximately 55 kilometres from the Sydney CBD, with Mr Fox saying Windsor Marketplace was ideally positioned to benefit from the booming North West Sydney growth corridor.

“The urban area of Windsor has a significant trade area population, currently estimated at 35,920 people and expected to increase to 38,770 by 2031,” he said.

 
 

Key Contacts

Andrew Palmer

Andrew Palmer

Associate Director
Retail Investments

Savills Sydney

+61 (02) 8215 8952

 

Steven Lerche

Steven Lerche

National Director
Retail Investments

Savills Sydney

+61 (0) 2 8215 8929