Sydney CBD centre on the market

BY Australian Retailers Association
08 October 2015

world squareA 50 percent interest in Sydney CBD retail centre, World Square, is for sale by JLL on behalf of Brookfield.

World Square has a Moving Annual Turnover (MAT) of $248 million and MAT per sqm of $18,188.

World Square is anchored by a Coles supermarket which has been recently expanded. It features six mini-major tenancies, 97 specialties including kiosks, and has a total GLA of 17,359 sqm.

World Square Car Park provides 522 car parking spaces currently managed by Secure Parking.

The centre covers an entire city block, bounded by George, Pitt, Liverpool and Goulburn streets, and is close to public transport.

Simon Rooney, JLL’s Head of Retail Investments Australasia, said World Square offers investors a 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,” said Mr Rooney.

“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.

“The imminent pedestrianisation of George St 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."

Mr Rooney said World Square will appeal to a 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.

“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.

World Square is being offered for sale via an international Expressions of Interest (EOI) campaign, closing on November 12.

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Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association representing Australia’s $310 billion sector, which employs more than 1.2 million people. As the retail industry’s peak representative body, the ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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