High performing Sydney-metro Neighbourhood Centre with residential development potential presents prime investment opportunity.
The high performing Chester Square Neighbourhood Shopping Centre being brought to market, represents a rare value-add investment opportunity for astute investors.
The site, which can potentially yield up to 41,786 square metres GFA subject to planning approval, will be available via an International Expression of Interest campaign this August marketed by Harry Bui and James Wilson of Colliers International.
“Chester Square Shopping Centre is a mixed-use developer’s dream, located in the heart of Chester Hill in South West Sydney. The centre occupies a strategic 1.67-hectare site in the commercial hub along major rail infrastructure which connects its residents to Sydney, Parramatta and Liverpool CBD’s,” said Harry Bui, National Director of Metro Sales, Investment Services at Colliers International
“An astute investor will have the opportunity to capitalise on a diversified income and secure cashflow generated from a mix of strong-performing national retailers and well-established local tenants, whilst progressing with a mixed-use development application for the future retail expansion and potential construction of high density apartment residences above,” said James Wilson, NSW Director of Retail Investment Services at Colliers International.
“Once the Centre’s mixed use potential is unlocked, future residents will be afforded convenient access to employment hubs and will be serviced by the retail offering below.”
The City of Canterbury Bankstown Council have identified the Chester Hill Town Centre precinct as the heart of the North-West City of Bankstown, and are looking to strengthen the area’s role as an important economic and transport connection to the West Central Subregion’s Economic Corridor and Industrial Belt.
“There has been a strong demand for affordable housing, but a lack of supply and limited new dwelling sales in the local area. The combination of the region’s accessibility and affordability is highly appealing to investors and residents, particularly first home buyers and young families, making Chester Square Shopping Centre’s mixed-use development potential very attractive to developers,” said Harry Bui.
Chester Square Shopping Centre provides developers with an exciting opportunity to not only expand the retail but to develop a residential apartment block above the site without impacting the trade of the high-performing Woolworths that is currently paying percentage rent.
“The non-discretionary nature of the centre offers investors an exceptionally secure income stream, with potential to expand the retail centre given the strong demand from national brands looking for accommodation within the centre,” said James Wilson.
The Centre is dominated by national and chain retailers which account for 72% pf the centres GLA. A further 90%* of speciality tenants are on attractive net leases with annual reviews between 4-5% per annum.
Located at 1 Leicester Street, Chester Square Shopping is in the heart of the bustling Chester Hill retail precinct and is the dominant offering within the area, servicing the convenience needs local residents and a large population of workers in surrounding suburbs.
Colliers International is offering Chester Square Shopping Centre for sale via International Expression of Interest, closing Thursday, 7 September 2017, at 2pm (AEST).