North Kellyville Square on the market for the first time since construction

North Kellyville Square, a fully leased neighbourhood shopping centre in Sydney’s Hills District, has been put up for sale for the first time since its completion in 2017.

Located at 46 Withers Road, North Kellyville spans 6878sqm, anchored by a full-line Woolworths supermarket and BWS and complemented by 18 specialty retailers, three kiosks and an ATM.

The centre is 100 per cent occupied, with national and chain operators comprising 86 per cent of GLA. The property generates a net income of approximately $3.4 million per annum, growing to approximately $3.7 million by November 2027 through contracted rent reviews and recently completed leasing transactions, and provides a WALE of 8.3 years by GLA. 

The centre generates an estimated moving annual turnover of approximately $97 million, with Woolworths and BWS trading around 30 per cent above industry benchmark and specialty sales per square metre approximately 19 per cent above benchmark. 

The asset is underpinned by an affluent catchment within Sydney’s Hills Shire, approximately 40 kilometres north-west of the CBD, where average household incomes are around 35 per cent above the Greater Sydney average. It is positioned within the North West Growth Area – planned to accommodate approximately 250,000 residents upon completion – with retail expenditure across its main trade area forecast to exceed $1.6 billion by 2046.

Vector Property, owner of North Kellyville Square, has appointed Colliers’ agents James Wilson and Ben Wilkinson to manage the expressions of interest campaign.   

“The combination of a fully leased income profile, a long WALE, rare fixed 5 per cent Woolworths rent reviews and secure near-term income growth provides investors with both income certainty and genuine growth,” said Wilson.

“Supported by the strength of the surrounding catchment, we expect the campaign to attract strong interest from a broad range of domestic and offshore investors.”

Wilkinson added, “Neighbourhood shopping centres continue to perform strongly because they provide essential retail services that are embedded within their local communities. We continue to see robust demand for neighbourhood shopping centres that combine high-quality tenant profiles with established trade areas and long-term income growth.”

The expressions of interest campaign will close on August 26.