Stockland sells Cammeray Square for $39m

The Cammeray Square lifestyle and convenience centre on Sydney’s lower North Shore traded on a yield of 7% and is set on a 6,815sqm corner site.

The complex forms part of a mixed-use development comprising four buildings surrounding a central plaza, with retail tenancies on the ground floor, anchored by Harris Farm Markets and comprising 15 specialty shops and restaurants.

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The upper levels are occupied by five commercial tenants, including childcare operator, Only About Children, and a strong medical offering. The fully leased site has a weighted average lease expiry of 5.8 years by area.

Cushman & Wakefield’s Nick Potter and Billy Dent managed the sale and the firm’s latest retail investments report found neighbourhood centres were the most heavily traded in the sub-sector in the last quarter.

The report said there had been 14 deals equating to $565 million in assets that sold in the quarter on an average initial yield of 6.58%. The Cammeray Square deals followed a number of other Sydney neighbourhood centre sales, including Abacus Property Group’s Liverpool Plaza shopping centre selling to a private development group for $46 million and the off-the plan purchase of the Coles Crows Nest stratum in for $43 million.

Fortius Funds Management chief executive Sam Sproats says the acquisition is consistent with the firm’s investment strategy of acquiring well-located inner urban retail and mixed-use assets.

Potter says neighbourhood shopping centres like Cammeray Square with a strong weighting towards defensive, convenience and serviced based occupiers, are still experiencing strong demand despite a softer retail environment.

“We continue to see the trend towards neighbourhood centres integrating with strata mixed-use developments,” he says.

This article originally appeared on www.theaustralian.com.au/property.