Parramatta Convenience Centre Sold for $41m

21 February 2021

New Zealand’s Cook Property Group has sold a Coles based Convenience Centre in Parramatta for $41.4m.

Situated beneath a residential complex on the high-profile corner of Victoria Road and Church Street, Parramatta, the Entrada Shopping Centre has a gross lettable area of 5,570m2 and a 196-space car park.

Church Street is currently undergoing substaintial redevelopment works with the installation of the Parramatta Light Rail which links Westmead and Carlingford to the Parramatta CBD.

The Centre serves an immediate catchment area and is anchored by a a Coles supermarket on a lease to 2030 with two, ten-year options. Other tenants include Liquorland, Subway, a F45 gym along with with medical and childcare centres and a serviced office. The property offers the purchaser a WALE of 7.2 years.

The supermarket represents over 60% of the GLA and 50% of the gross tenant income and is also the only full-line supermarket in the trade area, with a year-on-year MAT growth of 3.3%.

Image result for entrada centre sold floor plan

The vendors originally acquired the property in July 2017 paying $41.32M from Developers Dyldam.

Cook Property Group appointed CBRE to run an on market campaign for the Centre.

A private Australian investment trust has acquired Entrada Shopping Centre for $41,435,000, reflecting an initial yield of 5.97%.

Our Views

The vendor has effectively made a loss on the transaction (after transactions costs) which is disappointing for investors after a 4.5 year holding period.

Convenience Centres which are part of a mixed use scheme are difficult to grow in value unless there is expected to be substaintial population growth in the immediate vicinity.