JLL have transacted a development site in Southwest Sydney which will feed the growing demand in the growing catchment.
A strategic development site transaction at Tahmoor Town Centre has transacted in an off-market transaction for $14 million.
The sale was exclusively handled by JLL’s Retail Investments NSW team of Sebastian Fahey and David Mahood.
Two local private investors amalgamated 16 lots in 2008 and have been preparing the site for development for over 17 years.
Mr Fahey said “Core landholdings in Greater Sydney metropolitan locations for shopping centre developments are extremely rare. Locations that are considered key trading locations can attract strong competition between developers and supermarket operators.”
The project is proposed to deliver a new state of the art supermarket shopping centre that will cater for the burgeoning growth in the southwestern Sydney market. The 1.55-hectare site, which is located along Thirlmere Way and York Street, is located approximately 70km from the Sydney CBD and is a part of the Tahmoor Town Centre.
Fahey continued “Tahmoor Town Centre is the only major shopping centre in the precinct and there has been very limited retail development in the catchment since this was originally developed. This development site has been held in the same two local families for 17 years since acquiring all 16 lots in 2008, after many years of uncertainty, the local community will be delivered a best-in-class shopping centre that will service the growing demand from the Tahmoor catchment.”
Data from JLL Research states that approximately 1.13sqm of retail space has been created per additional person in Australia based on the population growth profile. The Australia population is forecast to grow by 1.3% p.a. over the next five years, or by 1.8 million people.
Mr Mahood from JLL stated “Applying the historical ratio of 1.13 sqm, Australia will require approximately 2.1 million sqm of retail floor space to accommodate average population growth over the next five years. However, with only 0.39 million sqm currently under construction in the supply pipeline, equating to merely 0.2 sqm per additional person, we face a significant shortfall. This undersupply of retail floor space, coupled with strong population growth, will likely drive sales productivity and consequently income growth. Evidence of this trend has already emerged through eight consecutive reporting periods of positive average re-leasing spreads among major retail-focused REITs.”
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