Sydney developer Billbergia has sold the entire retail and commercial component of its Arncliffe Central project for approximately $37 million to a private equity fund. The transaction, facilitated by Kamal Silwal, director of RWC Sydney City Fringe, encompasses 4,000 square meters of retail space located on the Princes Highway in Arncliffe.

The retail area includes a supermarket, various smaller stores, and a childcare centre. This space is situated beneath four residential towers comprising 806 apartments, all of which have been sold. The overall development also features a 1,634-square-meter library and community centre, a 4,000-square-meter public park, improved pedestrian access, and customer parking facilities.

Initially, Billbergia had planned to sell and lease the retail outlets individually. However, Silwal identified an opportunity to package the entire retail precinct in a single transaction. The purchaser, a fund with expertise in mixed-use retail leasing and management, was attracted by the potential to oversee tenancy arrangements and shape an integrated shopping destination.

Silwal explained that the deal was not merely a sale of retail space but represented a longer-term vision for the precinct. Both parties aligned quickly on key terms, expediting negotiations. The combination of a supermarket anchor, complementary uses like childcare, and a substantial residential catchment area contributed to the investment's appeal.

The retail space was sold in a cold shell condition at roughly $10,000 per square meter, underscoring strong commercial fundamentals underpinning the development.