ISPT have sold off a Coles based neighborhood centre in Greenacre NSW for $26.5m.
In a move ISPT described as the sale of a "non core asset", the asset is one of 38 neighbourhood centres ISPT holds within its ISPT Retail Australia Property Trust. In 2019, the Trust provided a 3.3% total return, down from the 11.5% average annual return over the past 5 years. The lack of valuation growth is likely to be the key contributor to the drop in performances as cap rate compression is no longer supporting the retail sector.
The property was acquired by the Harrington Property Group on a 5.8% passing yield.
The 4,733sqm Centre requires minimal management given the strong performing Coles supermarket and Liquorland who are expected to pay further turnover rent at in 2020. The Centre is supported by two specialties and one kiosk, being a pharmacy, gift wares store and café. Coles and Liquorland occupy 91% of the Total Centre GLA and secures 88% of gross income.
Sales process was managed by Colliers.
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