Despite the softer retail environment, Fortius Funds Management has shown there’s still demand for inner-city neighbourhood shopping centres by buying Stockland’s Cammeray Square on Sydney’s lower North Shore for $39.05 million.
The lifestyle shopping centre transaction, which spans a 6,815sq m corner site fronting Miller Street and Amherst Street, reflects a 7 per cent yield.
The centre forms part of a mixed-use development comprising four buildings surrounding the central plaza, anchored by Harris Farm Markets.
Cushman & Wakefield’s Nick Potter and Billy Dent managed the expressions of interest sale on behalf of Stockland.
“We continue to see the trend towards neighbourhood centres integrating with strata mixed-use developments,” Potter said.
“This has helped underpin strong investor interest in these centres in New South Wales and across the east coast.”
Fortius Funds Management’s chief executive Sam Sproats said the latest retail acquisition was consistent with the firm’s investment strategy of “acquiring well-located inner-urban retail and mixed-use assets underpinned by diverse income streams”.
“Retail requires continued reinvention to appeal to and maintain customer interest and loyalty,” Sproats said of the evolving retail landscape.
“At Cammeray Square, we see key opportunities to improve the customer experience through ambience, repositioning and accessibility initiatives that strengthens the tenancy mix.”
The sale of Cammeray Square follows the neighbourhood centre sale earlier this year of Abacus Property Group’s Liverpool Plaza shopping centre to a private development group for $46 million.
Earlier this month Fortius and SC Capital Partners Group purchased three retail properties at Frasers Property Australia and Sekisui House Australia’s Central Park development in Sydney for $174.5 million.