The final three retail assets (“Central Park Retail”) in Frasers Property Australia and Sekisui House’s award-winning A$2 billion mixed-use Central Park development in Sydney CBD’s downtown precinct are being offered for sale in one line.
With the flagship 12-year project now nearing completion, the joint venture will divest the remaining three retail assets – Central Park Mall, DUO Retail and Park Lane Retail – in one line. This transaction is the final component of the partnership’s divestment strategy.
Internationally recognised for the vertical gardens and heliostat that make it a global icon, at Central Park the joint venture partners have transformed a former brewery site into a vibrant mixed-use precinct with retail, commercial, hotel, education, student accommodation and residential uses integrated with a thriving entertainment and lifestyle offer.
“Central Park has redefined urban living in Sydney and Central Park Mall is the natural heart of this community. The precinct has won multiple awards in design and liveability and we are searching for the right buyer to keep the retail offer evolving,” says Mick Caddey, Development Director, Frasers Property Australia.
“These retail assets serve a large and growing catchment from a highly prominent and easily accessible location; surrounded by Australia’s leading universities and education precincts with over 115,000 students within walking distance of the centre.
“Neighbouring Central Station is less than a 500 metre walk and is Australia’s largest and most frequented railway station. Central Station is currently undergoing a $955 million upgrade , with an estimated 270,000 commuters passing through the station daily ,” says Mr Caddey. Colliers International’s Head of Retail Investment Services, Lachlan MacGillivray, has been appointed to sell the CBD retail assets via an International Expressions of Interest campaign commencing in early May.
The Central Park Retail offer comprises Central Park Mall, DUO Retail (eight retail outlets) and Park Lane Retail (six retail outlets) in one line.
Central Park Mall opened in late 2013. It is anchored by a high performing Woolworths supermarket and state-of-the-art Palace Cinema complex, the first in Australia to offer the Palace Platinum premium cinema experience, and also includes open green space with part of Chippendale Green ideal for activations and events.
Its 14,600 sqm of gross lettable area across five levels comprise a diverse mix of entertainment, fashion and experiential retailing, all complemented by a world class alfresco dining precinct.
“Together these are trophy retail assets with an extremely unique customer proposition. They offer a CBD centre anchored by a supermarket while also attracting non-discretionary spend through a strong entertainment and dining offer.
“The Central Park precinct continues to go from strength to strength and customers are voting with their feet and wallets with customer traffic and sales having grown 33 percent and 56 percent respectively since 2014,” says Mr MacGillivray.
This transaction represents the first significant opportunity since 2013 to acquire a 100 percent interest, with management, in a high calibre retail centre in Sydney’s CBD. Recent sales of Sydney CBD retail assets highlight strong investor demand for a tightly held asset class, with a 25 percent interest in MidCity Centre transacting at a yield of approximately 4.0 percent and Pitt Street’s Soul Pattinson Building sold for A$95 million at 4.0 percent.
Central Park Retail is expected to transact in excess of A$170 million.
Mr MacGillivray anticipates Central Park Retail will receive keen interest from domestic and international, private and institutional purchasers, given its quality and profile.
Source: Frasers Property Australia