Oxford Street centre comes with a large customer base
In the past year, sales of small through to large regional shopping centres have been higher than any other assets class. Owning a mall is more profitable than being a tenant as the landlord can generate profits from other areas, such as car parking fees and land revaluation, to offset flat rents.
As a result, all quality malls are keenly sought after, particularly those that offer redevelopment potential and have a skew towards food courts and supermarkets.
One of the latest to hit the market is the retail complex at Oxford Square, Oxford Street, Sydney. It is the first time in 28 years it has been offered for sale. The sale by a local syndicate of private investors is valued at about $70 million.
According to the sales agent Jones Lang LaSalle, the complex was extensively redeveloped in 2005 with the addition of 190 apartments at the rear of the site, which do not form part of the sale offer.
It is located halfway along Oxford Street, in an area considered to be one of the most densely populated nationwide.
Simon Rooney, the national head of retail investments at Jones Lang LaSalle, said there was expected to be strong competition for the complex given the quality of the retail offer and proximity to the CBD.
"Oxford Square is securely leased to a complementary mix of leading retailers and service providers, including Duffy Bros Supermarket, Liquorland, Chemist Warehouse, NAB and Fitness First, amongst others," Mr Rooney said.
Luke Harris, the NSW retail investment sales manager at Jones Lang LaSalle, said the centre had a large and established main trade area of 17,310 people and customer demand would be high in coming years because of the expected strong population growth in the area due to multiple high-density residential developments.
Frequently Asked Questions about this Article…
Oxford Square is a retail complex on Oxford Street in Sydney that has been put on the market for the first time in 28 years. It is attracting attention because it is located in a densely populated area, close to the CBD, and is offered for sale by a local syndicate of private investors with an asking value of about $70 million.
The sale is being marketed by Jones Lang LaSalle (JLL). JLL says the centre was extensively redeveloped in 2005 and is securely leased to a strong mix of retailers and service providers, making it likely to attract strong competition from buyers because of its retail offer and proximity to the CBD.
According to JLL, Oxford Square is leased to a complementary mix of tenants including Duffy Bros Supermarket, Liquorland, Chemist Warehouse, NAB and Fitness First, among others — a tenant mix that supports steady customer traffic.
The complex was redeveloped in 2005 with the addition of 190 apartments at the rear of the site. Those apartments do not form part of the current sale offer.
The article notes demand for retail property remains high because owning a mall can be more profitable than leasing: landlords can generate additional income from sources like car parking fees and land revaluation to offset flat rents. Buyers also favour quality malls with redevelopment potential and a tilt toward food courts and supermarkets.
Jones Lang LaSalle reports the centre has a main trade area of about 17,310 people. JLL expects customer demand to remain high in coming years due to projected strong population growth in the area driven by multiple high-density residential developments.
Oxford Square sits halfway along Oxford Street in one of the most densely populated parts of the nation and is close to the Sydney CBD. That location, combined with an established tenant mix, makes it attractive to investors seeking centres with reliable foot traffic and redevelopment upside.
The Oxford Street listing highlights broader market themes: quality shopping centres remain in demand, owners can boost returns through ancillary income and land value, and centres with strong supermarket/food and service tenants in high-density locations tend to attract keen buyer competition — factors everyday investors should watch when evaluating retail property exposure.
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