Mick Caddey, development director for Frasers Property Australia, said the retail assets served a large and growing catchment from a prominent and easily accessible location, with more than 115,000 students within walking distance of the centre.
“Neighbouring Central Station is less than a 500-metre walk and is Australia’s largest and most frequented railway station. Central Station is currently undergoing a $955 million upgrade , with an estimated 270,000 commuters passing through the station daily,” Mr Caddey said.
There will also be future demand from more office workers, with a strong suggestion that internet giant Google is looking at to establish a 90,000-strong campus adjoining Central Station when office towers are vacated and redeveloped.
“The Central Park precinct continues to go from strength to strength and customers are voting with their feet and wallets, with customer traffic and sales having grown 33 per cent and 56 per cent respectively since 2014,” Mr MacGillivray said.
“Recent sales of Sydney CBD retail assets highlight strong investor demand for a tightly held asset class, with a 25 per cent interest in MidCity Centre transacting at a yield of about 4 per cent and Pitt Street’s Soul Pattinson Building sold for $95 million at 4 per cent yield.”
The 14,600-square-metre Central Park retail site includes a Woolworths supermarket and the country’s first Palace Platinum Cinema complex.
The area has seen a major transformation, with the residential component of Central close to 100 per cent sold and occupied.
The only new hotel to open in 2018 in the city was the Four Points by Sheraton Sydney at Central Park. It is owned by Dr Jerry Schwartz and is the latest addition to the multi-stage $2 billion Central Park development.