GPT sells Norton Plaza for $153M

8 August 2019

GPT has sold off its Norton Plaza Shopping Centre in the latest deal in the retail sector.


The undisclosed private buyer has paid $153.2m paying a yield of 5.68% on the fully leased income. The sale, at $153M is the highest price paid for a neighbourhood centre so far this year, and at over $13,000/sqm of NLA, far exceeds the average neighbourhood sale price of $4,800/sqm.


Norton Plaza comprises 11,800 square metres with a Coles supermarket, Harris Farm market and approx 50 retailers.


The Centre is situated in a densely populated inner city suburb just 6.5km from Sydneys' CBD with per capita income levels 45% above the Sydney metro average. Higher per capita income levels, lead to higher retail sales and according to GPT, the Centre recorded an annual turnover of $119m ($10,093/sqm), above the average neighbourhood centre.


Time poor shoppers are however biting into the sales at the Centre with trade down from $127m (-6.3%) since 2016.


The fully leased yield for the Centre at 5.68% is sharper than the weighted average yield of 6.6% for neighbourhood centre sales so far this year, suggesting that the market is pushing more capital toward the smaller centres focused on non-discretionary retail.


The move to divest Norton Plaza is part of the GPTs broader efforts to refocus its portfolio on super-regional malls as well as boost investment in the hot logistics sector.