South-west Sydney’s largest homemaker hub has a new owner after being purchased for over $300 million by international investor LaSalle Investment Management.
The sale of the Crossroads Centre at Casula is the third largest single direct transaction of retail real estate agreed upon thus far this year alongside Shayher’s acquisition of Homeworld Helensvale for $300m and Sentinel’s acquisition of Casuarina Square for $420m. After last year’s record-breaking number of major retail agreements, the pace of such transactions has significantly slowed down.
The 52,000 square metre retail asset, owned by boutique fund house AsheMorgan with co-investment from BlackRock, was listed for sale in May. It is one of a small number of large format retail centres with more than 50,000 square metres of leasing space.
The Crossroads Centre, which AMP Capital finished in 2000, was advertised for its potential for long-term growth as a logistics hub with large format retailers including Bunnings Warehouse, Freedom, Fantastic Furniture, Planet Fitness, Nick Scali, and Officeworks secured with a Weighted Average Lease Expiry by income of 5.1 years.
Ash Morgan had acquired the Centre from AMP Capitals’ Diversified Property Fund back in December 2018 for $140 million reflecting a 6.8% cap rate.
According to sources in the market, the latest deal was signed for a yield below 5%. The acquisition’s sizable land block, which is over 14.3 hectares, is a top investment draw.
The property was assigned to JLL’s Nick Willis and Sam Hatcher, as well as Stonebridge’s Philip Gartland, Carl Molony, and Jonathan Fox.
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