Leading Australian funds management firm, Stirling Property Funds (‘Stirling’), is pleased to announce the sale of the McGraths Hills Home large format retail centre (LFR) for $66.8 Million to Centennial.
Situated in Sydney’s North-West Growth corridor, McGraths Hill Home (the ‘Centre’) is 100% leased to major ASX-listed and national tenants including Bunnings, Harvey Norman, Beacon Lighting, Petbarn, Repco and Subway.
The Centre was acquired in November 2024 for $55 Million, with the sale price delivering a 21% increase in value over the 18-month investment period and a net total return in excess of 17% p.a.
CEO, Scott Girard, said the strong result demonstrated Stirling’s ability to identify sectors benefitting from robust fundamentals leading to strong investor demand and compressed yields.
“We were ahead of the curve in terms of identifying the LFR Sector as a market which was mispriced relative to its underlying fundamentals, enabling us to deliver an outstanding risk adjusted return for our investors,” Mr. Girard said today.
“An active asset management strategy was undertaken post-acquisition, with net income increasing by 9% over the 18 month investment period and the expansion of national tenants to comprise 100% of Centre income, creating significant value to the Centre.
“Whilst Stirling was not intending on selling McGraths Hill Home, we received a compelling off-market offer which enabled us to deliver a return to investors which was well in excess of the target return.
“The outstanding 21% increase in value achieved over the 18 month investment period highlights the quality of the Centre and the effectiveness of Stirling’s pro-active management initiatives and our agility in executing this timely divestment.
“We congratulate Centennial on the acquisition of this outstanding Centre and would like to thank James Douglas from CBRE for representing Stirling on the sale.”
Mr. Girard said the off-market transaction highlights sustained investor demand for quality LFR assets in high growth corridors.
