The Charter Hall Retail REIT has acquired Rockdale Plaza in Sydney from City Freeholds in a $142 million deal.
The centre has a total GLA of approximately 21,331m2, high occupancy of 99.8% and is anchored by a strong performing Woolworths and ALDI supermarkets, a Big W together with seven mini-majors and 46 specialties plus convenient parking for 907 vehicles, driving 4.5 million annual customer visitation (+3.0% year on year)
According to SCN, Rockdale Plaza has an annual turnover of $180.8 million (+5.0% year on year) with strong speciality turnover of $11,703 per sqm (+4.9% year on year). Rockdale Plaza’s outperformance is underpinned by a substantial worker population and a vast main trade area of 130,040 residents, growing at a robust 1.9% p.a. over the next decade.
The Centre sits beneath 3 residential towers in what was one of Sydney's first mixed use developments.
The sale was brokered by JLL and achieving a cap rate of 6.25%.
Charter Hall’s Retail CEO, Greg Chubb said, “The acquisition of Rockdale Plaza offers the REIT an exceptional opportunity to acquire a high performing, convenience-based centre. Underpinned by supermarkets and non-discretionary food and service-based uses, the Acquisition aligns with the REIT’s investment strategy and enhances portfolio metrics to ensure we continue to deliver long-term sustainable growth in earnings for investors”.
Charter Hall have been disciplined in their acquisitions over the past 1-2 years with their only other recent acquisition being Gateway Plaza, Leopold VIC which they purchased in June 2018 for $117M.