In one of the biggest retail sales of the year, a 50% share in Westfield Eastgardens has sold for $720 million. The sale was arranged by Simon Rooney of JLL and the vendor, and the remaining half share owner was the Tower Terrace Group. Tower Terrace was founded by John Saunders, one of the original co-founders of Westfield.
Together with Frank Lowy the two war time refugees began with one small delicatessen before opening the first Westfield at Blacktown in 1959.
The purchaser, the Scentre Group, owns and operates a shopping centre portfolio with retail real estate assets under management valued at $47.4 billion. Scentre Group also has shopping centre ownership interests valued at $33.6 billion.
The portfolio includes 39 Westfield shopping centres and was formed in June 2014 through the merger of Westfield Retail Trust and Westifield Group's Australian and New Zealand management business.
Westfield Eastgardens, which opened in 1987, is located in Sydney’s south-eastern suburbs. It is comprised of 290 stores, over 85,000 sqm of retail space and generates an annual turnover of over $600 million. It currently caters to 295,000 local residents and is also right next door to the Pagewood Green development. According to South Sydney Cityscope, this development will see the creation of seven new urban blocks. The plan consists of a ten-year time frame to accommodate for 2,733 dwellings at an estimated cost of $642 million.
This sale of the centre share at $720 million reflects confidence in the area’s future and the future of the retail market. It was struck at a capitalisation rate of 4.25%.