JLL has been exclusively appointed to market the sale of a 50% interest in one of Sydney’s most high profile and best performing retail centres, World Square on behalf of Brookfield.
Simon Rooney, JLL’s Head of Retail Investments – Australasia, said “World Square offers investors an extremely rare opportunity to secure a strategic core retail foothold, in one of the most densely populated and growing precincts not only in the Sydney CBD, but across the country”.
“One of World Square’s great attributes is its potential to deliver income reversion. Investors are increasingly focusing on assets with the strongest income growth potential, a key driver in capital value enhancement, in an environment where yields have compressed significantly across all the real estate sectors.”
“A surge in apartment developments in the Sydney CBD has and will continue to directly benefit World Square over the next two to three years, as many of these projects complete construction, permanently expanding the resident population of the immediate local area.”
“Tourism growth is also increasing, being driven by a lower AUD, a key strategic driver for World Square given its close proximity to the immediate tourist precincts of Darling Harbour and Chinatown.”
“The imminent pedestrianisation of George Street and new light rail system will also dramatically improve convenient access to World Square, linking the southern CBD with the traditional commercial precincts in the north.”
“Very few retail investment opportunities offer such attractive characteristics; a rapidly expanding trade area population, limited supply outlook and major infrastructure improvements that will greatly enhance the already vibrant and active retail precinct in the short to medium-term.”
“This asset will appeal to a wide range of domestic and offshore buyers and institutional and ultra-high net worth private investors, due to its prime location and strong trading performance, as well as significant potential to add major international brands to the centre over time.”
“There has and continues to be a very limited number of major CBD retail assets of significant scale in Australia, and this limited stock is very rarely traded. There have been just four straight retail transactions above $150 million across all CBD markets since 2007 and just one in the Sydney CBD – being Harbourside Shopping Centre in November 2013 for $252 million“
“Given the shortage of core CBD opportunities historically, World Square will be competitively pursued and it will be a real test for core retail pricing,” said Mr Rooney.
According to the 2015 Shopping Centre News “CBD Guns” survey, World Square was rated number two in the country for the highest Moving Annual Turnover (MAT) with $248 million and number three for the highest MAT/sqm with $18,188/sqm.
World Square is anchored by a thriving Coles Supermarket which has been recently expanded and features six mini-major tenancies, 97 specialty tenancies including kiosks, providing a total GLA of 17,359 sqm. World Square Car Park provides 522 car parking spaces currently managed by Secure Parking.
World Square expands an entire city block, bounded by George, Pitt, Liverpool and Goulburn Streets, access to public transport is very convenient with Town Hall, Central and Museum train stations and bus stops all in close proximity.
World Square is being offered for sale via an International Expressions of Interest (EOI) campaign, closing on Thursday, 12 November 2015.