Strategic Chatswood CBD investment and landbank to be sold with approved mixed-use potential

26 July 2022

Stonebridge Property Group and JLL have been appointed to sell a 100% interest in Mandarin Centre, a strategic income producing land bank opportunity, whilst providing developers access to a rare freehold Chatswood CBD investment and landbank with Masterplan Approval for a 27-storey mixed use development.

The Centre, expected to go to market at the end of July, is conveniently located within a highly coveted commercial core, opposite Westfield Chatswood Shopping Centre and within approximately 100 metres of Chatswood Interchange and Station – the fifth busiest railway station in the Sydney network.

Within a 20-minute drive time, the bustling CBD location is home to over 1.2 million people. The Centre’s main trade catchment has a forecasted total retail spend of $4.3 billion between 221,518 people (2022). With 298,100 sqm of office space, Chatswood also caters to 19,931 workers. Mandarin Centre is situated at the heart of this thriving and dominant retail and office market of critical mass on the North Shore.

Occupying one of the last major freehold developable land holdings in Chatswood CBD, the prominent double-frontage site positioned at the corner of Albert Ave and Victor St, sits on an underutilised 3,519 sqm of prime land benefiting from exposure to over 19.6 million commuters annually.

In June 2020, the property gained State Government Masterplan approval setting the framework for a future development, comprising a total GFA of 39,093 sqm at an FSR of 11.11:1, and building height limits of up to 27 storeys. The land holding is situated to the southern fringe of Chatswood CBD and upper levels of any future development will enjoy uninterrupted views of the Sydney CBD and the iconic Sydney harbour.

The existing Centre, a substantial 13,385 sqm of CBD retail offering, has played a key role in bringing some of the most renowned brands to Chatswood since 1996. It currently features 3 levels of entertainment, 2 levels of retail / medical and a busy food court. It caters to families and children and is home to popular offers such as TK Maxx, Hoyts Cinema, Strike Australia, Holey Moley, Daiso Japan and Miracle Supermarket. For purchasers seeking to land bank the property, this robust tenancy mix provides an opportunity for long term rental growth whilst the current lease structure provides flexibility for developers who are desirous of access to the land in the short to medium term.

Lincoln Blackledge, National Partner of Stonebridge said, “The Mandarin Centre offering presents a very rare opportunity for developers to leverage over a decade of work invested into achieving an outstanding planning outcome in the perfect location for a world-class mixed-use development.”

Carl Molony, National Partner of Stonebridge said “Mandarin Centre is ideally located to capitalise on the convenience of an established commercial and retail CBD with significant gaps in the market. The affluent population of Chatswood and surrounds will drive strong demand for brand new luxury retail and residential amenities. The Mandarin Centre is the largest private held freehold shopping centre in Chatswood and is a truly rare trophy asset.

JLL’s Retail Investments – Australia, Senior Director Nick Willis said, “The Mandarin Centre is one of the largest landholdings in the Chatswood CBD. Major landmark holdings that offer a blank canvas potential in a core CBD Australian market rarely come up for sale, this is a generational holding. Chatswood has transitioned into a dense urban CBD with a concentration of retail and office uses creating a critical mass which draws from a vast and affluent trade area. These catchment dynamics coupled with the future development potential of the Mandarin Centre sets the stage for the next owner to create a world class high-end mixed-use asset unlike any other.”

Mr Willis said, “The offering provides ultimate flexibility, underpinned by a strong income stream that can maintained for the long term, or alternatively a buyer can capitalise on the lease profile and develop it beyond 2027.” 

Ideally established within Sydney’s highly sought-after lower north shore, Mandarin Centre is primed to capitalise on a strong forecast retail spend growth within the main trade catchment, averaging 3.1% per annum to 2026. According to Orbital Insights data, the convenience location attracts a huge draw of residents, workers, and visitors, with over 30% of visitation coming from beyond the Main Trade Area.

Further, the $17 billion Metro City & Southwest project, due to open 2024, will shorten commute times from Chatswood to Sydney CBD to just 18 minutes. The project will see the construction of 15.5km of twin tunnels from Chatswood, running under Sydney Harbour and into the CBD before heading south-west and is expected to increase network capacity by up to 60% to meet demand.

The Mandarin Centre is for sale by International Expressions of Interest closing Wednesday 24th August 2022 at 2pm (AEST).