NSW shopping centre Fairfield Chase passed in at auction short of its $10 million asking price

Fairfield Chase Retail Centre, a Spencer Street property in Fairfield, NSW, with development approval for 119 units, has has passed in at auction on a vendor bid of $9.5 million.

Jones Lang LaSalle agent Anthony Bray is in further negotiations with a buyer. The asking price for the property is $10 million.

The centre currently earns $1,354,000 per year in rent, with 50% of that coming from the healthcare anchor tenant, which has a lease to 2018.

Along with the anchor tenant there are 22 others, including the Fairfield fruit market.

The building comes with development approval for two 76-metre residential towers with a total 119 one-bedroom, two-bedroom and three-bedroom apartments.

The site currently has 171 parking spaces, and the approved plans would add two further levels of parking for a total of 272 car spaces.

The Urbis-designed plans would involve the demolition of the existing retail centre to build a new medical centre, supermarket and specialty stores.

The plans were approved last year, so a new buyer would have four years before they lapse.

The shopping centre tenants are the subject of termination and/or relocation clauses, which agent Anthony Bray says provides flexibility for any buyers to realise the full development potential.

The 5,160-square-metre property is in the centre of Fairfield, nine kilometres south of Parramatta, between Spencer Street, Smart Street and Council Lane.

It went to auction on August 30.

Bray says properties like this are harder to come by.

“There are lot more properties like this being developed than there are approved.”