A Woolworths based neighbourhood centre in Cecil Hills was sold this week for $21M. Strong interest in the sector has seen the property, which was marketed by Colliers for sale by auction, snapped up in the days prior to auction. Cecil Park is located just south east of the intersection of the M7 Motorway and Elizabeth Drive, some 34 kilometres west of the Sydney Central Business District. The enclosed centre comprises a includes 11 specialties and 167 car spaces on a 13,400sqm site. The successful Woolworths supermarket generates turnover rent and recently exercised an option to extend their lease to October 2024. The property generates 78% of its net income from national tenants providing $1.27m of net income per annum. The sale price of $21.0M reflects a yield of 6.0%, or 5.5% without the turnover rent. The property was last traded in 2010 for $10.8M. At the time, the fully leased rental was estimated at $1.22m, reflecting a yield of in excess of 11% and whilst cap rates have compressed considerable since then, the rental growth over the past 9 years has obviously been minimal. Location plan: #Retail
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