Sydney property developer Billbergia has sold the retail component of its Arncliffe Central project to a private equity fund for approximately $37 million.
Brokered by RWC Sydney City Fringe director Kamal Silwal, the sale covers 4000sqm of retail space on Princes Highway in Arncliffe, including a supermarket, smaller shops and a childcare centre.
The retail precinct sits beneath four towers comprising 806 apartments, all of which have sold. Reflecting Billbergia’s vision of community building, the wider development also features a 1634sqm library and community centre, a 4000sqm public park, new pedestrian links and customer parking.
The original strategy was to sell or lease the shops individually. Silwal, however, identified an opportunity to offer the entire retail component as a single package.
“This was not simply about selling retail space; it was about presenting a long-term and sustainable vision for the precinct,” Silwal said.
“Once the purchaser understood the opportunity to control the tenancy mix and create a coordinated shopping destination, the commercial rationale became very compelling.”
The deal reflects growing investor interest in neighbourhood shopping centres across Sydney’s developing suburbs. According to Silwal, both parties were aligned on their objectives and key terms from the outset.
“The inclusion of complementary uses such as childcare, together with the supermarket-anchored retail offering and significant residential catchment, reinforced the long-term investment fundamentals,” Silwal said.
“Ultimately, the openness, trust and commercial understanding demonstrated by both parties were instrumental in achieving this outstanding result.”
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