Gerry Harvey looking to buy LaSalle's Castle Hill large-format retail centre
Billionaire retailer Gerry Harvey’s Harvey Norman is looking to buy a large-format retail centre in Sydney’s Castle Hill for a price that could top $300 million.
In March LaSalle Investment Management appointed agents JLL and McVay Real Estate to sell the Home Hub Marsden Park and Castle Hill retail properties in Sydney, and which were expected to fetch more than $350 million. But pricing indicates a much higher figure.
There has been strong interest in the property with Harvey Norman expected to face competition from listed group Aventus, whose management remarked at a Macquarie Connections equities conference recently that pricing for the LaSalle assets would be sharp.
LaSalle is looking to sell its Home Hub Marsden Park and Castle Hill retail properties in Sydney. Photo: Supplied
Market sources indicate that the Castle Hill asset alone could sell for more than $300 million on a capitalisation rate of 5.5 per cent.
“Harvey Norman looks at every property,” Mr Harvey told The Australian Financial Review, “Whether or not something proceeds is another matter.”
Home Hub Castle Hill is one of Australia’s biggest large-format centres 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.
In February 2012 a LaSalle Investment Management-run trust bought that asset 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.
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.
