In a landmark deal, Top Ryde City Shopping Centre in Sydney has sold for a staggering $525 million, marking the first on-market sale of a fully leased metropolitan regional retail hub in over a decade. As reported in Real Commercial on October 10, 2025, the transaction has captured global investor attention, underscoring the growing demand for prime retail assets in Sydney’s competitive market. The centre, home to top-tier tenants like Coles, Woolworths, ALDI, and Event Cinemas, now stands as a symbol of the shifting dynamics in Australia’s retail investment landscape.
Unrivaled Demand for Core Metropolitan Assets
The sale of Top Ryde City Shopping Centre comes at a time when retail assets of this scale are becoming increasingly rare and irreplaceable. According to Colliers managing director of Asia-Pacific retail capital markets, Lachlan MacGillivray,
“Assets of this scale are effectively irreplaceable given density, land values and construction costs that constrain new supply.”
This makes shopping centres like Top Ryde particularly attractive to investors looking for a stable, long-term income stream.
In cities like Sydney, where land values are exceptionally high, developing new retail centres on a similar scale is not only expensive but increasingly difficult due to zoning restrictions and the cost of construction. The existing centres that are still operational, especially in well-connected locations like Top Ryde, become coveted because they cannot be easily replicated. As a result, the demand for these prime retail assets is steadily increasing.
For investors, these types of assets offer a level of stability that many find appealing, especially in an environment where global uncertainties and market volatility remain high. The sale of Top Ryde City Shopping Centre, therefore, underscores how such assets are becoming highly sought after by institutional investors with long-term strategies.
A Decade-First Sale of Sydney’s Regional Shopping Centres
What makes this sale even more remarkable is the fact that it is the first time in more than ten years that a fully leased, 100% interest in a metropolitan regional shopping centre in Sydney has been sold on the market. According to MacGillivray,
“Core metropolitan assets of this calibre remain tightly held and this is the first on-market sale of a 100 per cent interest in a Sydney metropolitan regional shopping centre in more than a decade, reflecting the appetite for long-term exposure to defensive retail in the right locations.”
This scarcity of available assets in Sydney’s key retail locations makes each sale even more significant. The last transaction of a similar nature occurred more than a decade ago, with market conditions, land values, and consumer preferences evolving significantly since then. The sale highlights the growing interest in Sydney’s retail market, especially for assets that are centrally located with strong foot traffic and consistent tenant demand.
Moreover, the fact that Top Ryde City Shopping Centre was fully leased at the time of purchase, boasting an impressive initial yield of 6.7%, further emphasizes its appeal to investors. Fully leased centres provide a predictable income stream, which is especially attractive to institutional investors like Keppel REIT, who are focused on long-term stability.
Shifting Investor Sentiment in Australia’s Retail Market
The growing international interest in Australia’s retail market is reflected in Keppel REIT’s acquisition of Top Ryde City Shopping Centre, marking the company’s first-ever purchase of a shopping centre globally. According to JLL executive director of retail investments for Australia and New Zealand, Nick Willis, “This shift in investor sentiment is being buoyed by the performance of the US retail market and is providing the catalyst for many investors to make their first foray into the sector … with Keppel REIT making their first shopping centre acquisition globally.”
The confidence that investors are showing in Australia’s retail sector is not surprising, given the recent performance of US retail markets, which have demonstrated resilience even amidst changing economic conditions. The performance of retail centres in key locations like Top Ryde, which has seen a steady increase in sales and foot traffic, is enticing to investors looking for opportunities in stable markets.
This shift in investor sentiment also signals a broader trend where international investors are looking to diversify their portfolios by entering new markets such as Australia. For investors like Keppel REIT, entering the Australian market with a flagship asset like Top Ryde City Shopping Centre provides a solid foundation for further acquisitions and long-term growth in the retail sector.
