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Mirvac sells St Marys Village Centre

Mirvac has sold one of its sub regional centres in Western Sydney for 36% above its book value to an Asian back investor. The St Mary's Village Centre sold for $68M on an exceptionally sharp cap rate of 5.35%.

The centre spans 15,904sqm and comprises Woolworths,Target, 37 specialty stores and 551 car parking spaces. The Centre sits on a 4.2ha mixed-use zoned site with an FSR of 2.5:1 representing about 104,875sqm of total permissible space under existing planning controls.

The lease to Target is due to expire in 2021 and with the future of the discount department store in question, the shopping centre presents an opportunity for future redevelopment.

In 2016, Mirvac had planned to acquire the adjoining Council owned parkland to allow for a major expansion of the Centre and to form a new town square. Council had earlier approved the reclassification of the land for development and agreed to enter negotiations for its disposal. In 2017, the NSW Government approved the amendment to the LEP to allow for the land to be sold and developed in accordance with the St Marys Town centre Strategy, however no deal with Mirvac has been announced.

If a deal with the Council has been agreed, the Centre would benefit from the additional development capacity which may explain the high price paid by the purchaser.

McVay Real Estate handled the sale on behalf of Mirvac.

Location Plan:

#Retail #Mirvac