LaSalle to sell $350m Castle Hill homemaker centre
Larry Schlesinger and Matthew Cranston
LaSalle Investment Management is looking to sell its Home Hub Marsden Park and Castle Hill retail properties in Sydney, which could fetch more than $350 million.
LaSalle’s decision is the latest move by a global investment player to capitalise on the high prices in retail assets.
This week private equity group Blackstone appointed agents to sell its shopping centre portfolio worth as much as $3.6 billion.
LaSalle’s Home Hub Castle Hill is one of Australia’s biggest large-format centres located in Sydney’s growing north-west region, about 30 kilometres from Sydney’s CBD.
The 52,000-square-metre centre has more than 75 retail outlets anchored by Harvey Norman, Domayne, Freedom, Nick Scali, Officeworks and Toys R Us. There is also a comprehensive range of services including Commonwealth Bank, Just Cut hairdresser, Good Price Pharmacy and Service NSW.
In February 2012 a LaSalle Investment Management-run trust bought Home Hub Hills in Castle Hill, Sydney, for $178.5 million. Four industry super funds – AustSafe Super, Club Plus Super, Energy Super and Intrust Super – provided the equity capital via the LaSalle Australia Club Investments Trust.
In 2015 LaSalle Australia Club Investments Trust snapped up a site that became the 20,000-square-metre Home Hub Marsden Park in a $66 million deal. Tenants include The Good Guys and JB Hi-Fi.
LaSalle is yet to appoint agents to sell the assets and declined to comment.
Strong retail demand
Large format centres were among the best performing retail assets last year as the $65 billion-a-year retail sector benefited from strong demand for household goods reflecting the home building boom, while rents increased as landlords diversified their tenant bases to include higher paying tenants such as supermarkets, cafes, childcare centres and restaurants.
Last year the sector had its defining transaction when the listed Aventus Retail Property Fund acquired a portfolio of five homemaker centres from Blackstone for $219 million. The Blackstone-Aventus deal, which was struck on a 7.4 per cent yield, recalibrated values in the sector.
However, economic forecasters BIS Shrapnel warned recently that the conversion of former Masters DIY stores into large format retail centres by new player Home Consortium would stall rental growth with the new supply coming on board at a time of slowing retail sales.
