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News release


New sale boosts Q1 2013 sub-regional shopping centre transaction volumes to AUD 546 million: the largest first quarter on record for this retail sub-sector

Sydney sub-regional shopping centre Fairfield Forum sells for AUD 32 million

SYDNEY, 15 MARCH 2013 – Fairfield Forum, a Sydney metropolitan-based sub-regional shopping centre, has been sold by Simon Rooney and Luke Harris of Jones Lang LaSalle on behalf of ISPT Pty Ltd to Harrington Property Group for AUD 32 million at an initial passing yield of 9.43%. The sale follows a competitive Expressions of Interest campaign.

Following on from Federation Centre’s sale of a 50% share in four sub-regional assets and one convenience centre to ISPT for AUD 371.4 million, the sale of Fairfield Forum brings the total investment into sub-regional shopping centres for Q1 2013 to AUD 546 million.

This is a significant uplift on the AUD 65.5 million sub-regional shopping centres sold in Q1 2012, reflecting the largest Q1 on record for this retail sub-sector since Jones Lang LaSalle began monitoring it in 1988.
According to Jones Lang LaSalle, the volume of sales signifies a revival of the sub-regional sector.
“Investors are becoming more confident in the retail outlook and are now looking to secure positions in assets which will deliver growth through the next cycle,” said Australian Head of Retail Investments at Jones Lang LaSalle, Simon Rooney.
Mr Rooney said assets with development potential have been particularly sought after.
“We are seeing investors emerge right across the risk spectrum in the sub-regional sector. While interest has been predominantly for core-quality sub-regional assets, we are starting to see some private investors and syndicate buyers emerge to access high yielding core-plus and opportunistic style assets.”
Fairfield Forum, which has a gross lettable area (GLA) of approximately 17,954 sqm located 24 kms from the Sydney CBD, features a number of large retailers including Coles and Kmart. The centre, which also houses 40 specialty stores, five kiosks, five ATMs and a Medical Centre, services a main trade area of 208,100 residents.
Fairfield Forum is well-positioned to benefit from the proposed change in zoning to 'B4 Mixed Use' as per the draft Fairfield City Council Local Environmental Plan 2011. The change in zoning to 'B4 Mixed Use' provides the scope for potential residential development.​