Primewest Secures Woolworths-anchored Potts Point Retail Centre

Centuria Capital Group subsidiary, Primewest, has acquired the Woolworths-anchored daily needs retail precinct within Potts Point’s OMNIA mixed-used development for $14.3million on a 5% initial passing yield on behalf of its convenience daily needs institutional retail mandate.

The 1,285sqm retail precinct is located at 113 Darlinghurst Road, Potts Point NSW, within the prime, inner-city Sydney neighbourhood. Built in 2018, the modern asset includes a Woolworths Metro, provides an 8.2-year weighted average lease expiry (WALE) and, with a 24-month rental guarantee for the two specialty tenancies, 100% occupancy.

Bruce McCully, Primewest Head of Retail and Primewest WA General Manager, said, “Daily needs retail centres, particularly those anchored by leading supermarkets, have been resilient assets throughout COVID-impacted trading periods. This is largely due to non-discretionary retail spend remaining consistent throughout lockdown periods.

“The OMNIA retail acquisition is a rare opportunity to capitalise on a prime metropolitan location, which benefits from significant footfall, being located within the heart of Potts Point’s thoroughfare, while also servicing a densely populated well-to-do neighbourhood. Its location, directly next to the Kings Cross Railway Station, is also a key benefit of this site.

“The acquisition is another example of the Group’s expanding retail portfolio since Primewest merged with Centuria earlier this year. Not only does our transaction team provide an enviable track record for securing high-quality retail real estate but our in-house development team has completed $57.45million of retail real estate in recent months with more projects due to start construction shortly.”

Primewest recently announced the acquisition of a $71.2million shopping centre in the Western Australian gateway town of Geraldton, c.400km north of Perth’s CBD, for a new unlisted wholesale fund. The Northgate Geraldton Shopping Centre is the dominant retail precinct in the area, anchored by Coles and Kmart.

These acquisitions are further complemented by the development of retail centres including a $31.75milion neighbourhood shopping centre at 80 Maffina Parade, Ellenbrook WA, and an adjoining $25.7million large format retail centre anchored by a BP service station. The first stage of a neighbouring large format retail complex, with an end value of c.$6.55million, will begin development in November 2021.

The OMNIA retail acquisition adds to the mandate’s existing $257million DNR portfolio, which includes the Spring Farm Shopping Centre in southwest Sydney; two western Sydney, Woolworths-anchored centres, Pemulwuy Marketplace and West Ryde Marketplace; and Melbourne Square, Southbank. The mandate also recently acquired the $34million Byford Village Shopping, Perth in early September 2021.

The six-asset portfolio provides a Weighted Average Lease Expiry (WALE) of 10.7 years.

Recently, Primewest merged with the ASX-200 listed Centuria Capital Group. The enlarged company manages a $17.4billion platform of Funds Under Management (FUM) including $11billion of unlisted real estate funds and $5.5billion of listed real estate funds. The Potts Point property was exclusively marketed by Colliers International’s James Wilson and Alex James-Elliott

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About Warwick Petschack

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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