Real Asset Management Group has emerged as the buyer of the Broadway Plaza, Punchbowl, paying $41.2 million to creditors PPB Advisory.
It comes as food-anchored neighbourhood shopping centres are gaining traction for investors with their proximity to high-density catchment areas and development potential.
The head of real estate at RAM, Will Gray, said the acquisition was in line with the company’s retail strategy along ‘s eastern seaboard.
“We are delighted to have secured a recently developed shopping centre in the tightly held Sydney metropolitan area for our investors on attractive terms,” Mr Gray said.
“The fundamentals for the centre looking forward are exciting and challenging, and we will certainly need an active and concentrated approach to execute on our strategic long-term plan to deliver maximum value to our investors.”
Colliers International’s James Wilson, director of NSW retail investment services, and Matthew Meynell, head of investment services, brokered the deal in conjunction with Philip Gartland and Lincoln Blackledge from Stonebridge Property Group.
“This benchmark result highlights the huge appetite for NSW neighbourhood shopping centres,” Mr Wilson said.
“The campaign demonstrates the ability of prudent retail investors to constantly review their hurdle rates, in line with the evolving market conditions, in order to deliver on their investment strategy.”
“The unprecedented interest from established and emerging investors, and subsequent result, reflects the lack of quality investment opportunities in metropolitan Sydney,” Mr Meynell said.
Mr Gartland said there is move back to buying retail stratum centres by a range of purchaser groups, particularly in tightly held inner metropolitan locations.
“Stratum retail was a tougher sell in the past, but with the improvement in mixed-use development design and retail/residential compatibility, coupled with the increasing density and hence value of land, well-anchored stratum titled retail centres have shown yields more akin to traditional freehold sites in recent years as more and more buyers accept its longevity and evolvement as an asset class,” he said.