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News release


Surge in activity in Australia’s sub-regional retail market, as Auburn Central sells for AUD 68m

Two major retail transactions in Auburn, New South Wales in less than two months

​​AUSTRALIA, 31 March 2015 – Simon Rooney of JLL has exclusively negotiated the sale of Auburn Central sub-regional shopping centre in New South Wales on behalf of Holdmark Property Group to Elanor Investors (ENN) for $68 million, which reflects a fully leased yield of 8.04%.

This is the second major retail transaction this year in Auburn, which is undergoing a process of urban densification, with a variety of high-rise residential apartment developments under construction and proposed. The sale of Auburn Central follows the sale of The Marketplace Auburn, a sub-regional centre under development by Newmark & APN, acquired by NERF for circa $120 million in February this year, also negotiated by JLL.

Simon Rooney, JLL’s Head of Retail Investments for Australia said, “2014 was the strongest year ever recorded for sub-regional shopping centre sale transactions. The New South Wales market has been extremely active in terms of overall investment activity – especially within the sub-regional sector - with nine sub-regional sales totalling over $700 million transacted last year.

“The very high levels of sub-regional investment activity has continued into 2015, demonstrating the ongoing strong demand for sub-regional assets, particularly those with positive retail fundamentals, future development potential and/or a solid income growth outlook. Opportunities to acquire sub-regional centres within established areas of metropolitan Sydney are limited and was highly sought, said Mr Rooney.

Auburn Central is a vibrant, thriving food, service and convenience based sub-regional shopping centre located on the corner of Harrow Road and Queen Street in Auburn directly opposite the busy Auburn railway station is Sydney’s metropolitan area. Located approximately 20 kilometres west of the Sydney CBD and approximately 6 kilometres from the Parramatta CBD.

Constructed in 2004, Auburn Central forms the “town centre” of a significant mixed use development that benefits from 450 apartments located above it. Auburn Central is anchored by a strongly trading 3,650sqm Woolworths Supermarket and a 7,159sqm Big W Discount Department Store, both leased to June 2024. These anchor tenants are complemented by 46 specialty stores with very low vacancy and strong representation by national chain and local retailers. Current annual foot traffic through the centre is estimated at 10.8 million.

ENN CEO, Glen Willis, Said, “We are very pleased to have secured Auburn Central, We believe the centre represents an exciting opportunity for investors in the Auburn Central Syndicate. The transaction is the third funds management initiative following our IPO in July 2014 and increases ENN’s owned and managed assets to over $400 million.”

ENN’s Head of Real Estate, Michael Baliva, added, “ Auburn Central is a mature shopping centre generating stable cash flow by providing convenient access to non-discretionary everyday goods and services for its densely populated and growing trade area. The Auburn Central Syndicate provides its investors with strong income returns and opportunities for capital growth.”