A sub-regional shopping centre in Sydney's west has been sold at an $18 million premium after a competitive expression of interest campaign.

St Marys Village is anchored by a Target and a high-performing Woolworths, both of which are complemented by 37 specialty stores and 551 on-grade car spaces.

Situated in the western economic growth corridor, the retail centre is expected to benefit from increased infrastructure spending around the Western Sydney Airport site, which is located 17 kilometres south-west of the property.

The upcoming expiry of Target in 2021 and short centre WALE of 3.1 years did little to dampen interest in the site, with McVay Real Estate and Stonebridge Property Group fielding more than 20 expressions of interest in the month-long sales campaign, all of which were in excess of book value.

St Marys Village financial summary. Source: McVay Real Estate

The centre was sold at a passing yield of 5.04 per cent and a fully leased yield of 5.35 per cent.

McVay Real Estate Managing Director Sam McVay said the weight of capital and strength of pricing was a "very promising" sign for the retail investment market in 2020.

"This campaign was a solid test for market sentiment due to the very limited supply of Sydney sub-regional centres in recent times," he said.

The St Marys Shopping Village was listed by Mirvac last August.

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