Sydney’s Gordon Centre on block with $150m price tag
The listed Charter Hall Retail REIT has put the Gordon shopping centre in Sydney’s north on the block with the trust hoping to reap more than $150 million from the sale.
The group has tapped Colliers International and Stonebridge Property Group to market the Gordon Centre, including the Gordon Village and adjoining assets, partly as it expects developers to chase the site for its residential potential.
The trust has received a series of unsolicited inquiries from parties seeking to buy the centre and believes that it could realise a sum well above its current book value due to the redevelopment potential.
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The Charter Hall Retail REIT picked up the centre for just $67 million from a Dexus-managed private syndicate in 2010. It has also looked to offload smaller centres this year as it refocuses on larger subregional shopping centres.
Armada Funds Management was in talks to buy a $280 million shopping centre portfolio from Charter Hall Retail REIT earlier this year but that deal did not proceed.
Charter Hall says the offer of the Gordon Centre is in addition to the non-core assets it has already earmarked for sale as part of its strategy.
“We have previously identified Gordon Centre as an asset with significant redevelopment potential. Due to the current mixed use zoning and floor space ratio along with proximity to existing public transport infrastructure, the potential exists to redevelop the property with a major residential and retail asset in the heart of the Gordon Town Centre,” fund manager Scott Dundas says.
He says if the centre is sold, the proceeds will be directed towards repaying debt and ongoing capital management, including the further buyback of shares.
This article originally appeared on www.theaustralian.com.au/property.
