Stockland sells Cammeray Square for loss
In a further reflection of the softening interest in retail centres, Stockland has sold the Cammeray Square Centre to Fortius for $39.05 million reflecting a yield of 7.0%, a slight loss on their acquisition price in 2007.
The centre is located 7 kilometres north of Sydney CBD and is anchored by recently refurbished Harris Farm Markets, plus a diverse mix of 15 specialty retailers, with a focus on essential services and fresh food, together with a 1,550 sqm childcare centre and 870 sqm of commercial suites. The fully leased site has a Weighted Average Lease Expiry (WALE) of 5.8 years by area.
Sam Sproats, Chief Executive Officer & Executive Director, Fortius Funds Management Pty Ltd said: “The acquisition of Cammeray Square is consistent with the firm’s investment strategy of acquiring well-located inner-urban retail and mixed-use assets underpinned by diverse income streams that are supported by strong and growing catchments.
So far in 2019, we have seen 23 Neighbourhood Centre sales sold totaling $990m with most of the sales in Q3. The weighted average yield so far for 2019 is 6.6% and apart from Q3, the trend has been softening.
The Cammeray Centre sale was handled by Cushman & Wakefield.