- Australian investment trust acquired Entrada Shopping Centre for $41.44m
- CBRE sold the complex on behalf of Prime Sydney Retail Holdings Pty Ltd
- Follows popularity of convenient shopping centres due to Covid
Entrada Shopping Centre, located on the corner of Victoria Road and Church Street, 1km north of the Parramatta CBD, was sold to a private Australian investment trust for $41,435,000 following a hotly contested sale campaign.
A high performing Coles supermarket anchors the centre which has a gross lettable area of 5,570sqm and features a 196-space car park.
The sale was negotiated by CBRE’s James Douglas on behalf of Prime Sydney Retail Holdings Pty Ltd, who said despite a fall in total retail transactions, non-discretionary retail remains resilient.
“While total retail transaction volumes have fallen considerably from 2019 levels, neighbourhood centres have taken a significantly increased share of all Australian retail deals – reflecting 62% of all retail transactions in 2020, up from 17% in 2019 – as purchasers seek out assets providing income certainty and security,” said Mr Douglas.
This popularity of convenient neighbourhood shopping centres, such as Entrada, is a common trend that has been seen nationally.
When announcing their half-yearly results, Charter Hall Retail REIT (ASX: CQR) made mention of consumers preferring local convenience shopping centres as a result of Covid, which facilitated a 7.1% increase in their operating earnings.
The centre’s lease with Coles lasts until 2030 with two 10-year options. The supermarket alone accounts for over 60% of GLA and half of the centre’s gross tenant income.
The site is close to many new Western Sydney Developments such as the new $300 million Bankwest Stadium and the $1.2 billion Riverbank Precinct.
Additionally, the site lies directly opposite Prince Alfred Square which will be home to a new light rail network station on Church Street set for completion in 2023.
Mr Douglas believes the centre will benefit from the continuing growth within Greater Western Sydney, which is projected to have a population increase to 3.3 million residents by 2036, up from 2.3 million, according to 2016 data.
“This accounts for two-thirds of Sydney’s population growth within the same period, reinforcing Parramatta’s role as a burgeoning residential and employment hub,” Mr Douglas concluded.