Bellarine Village Shopping Centre has been purchased for $36.5 million by a private Melbourne-based investor, adding to a wave of regional shopping centres that have been snapped up this year.
The 10,443 sq m centre, located in Newcomb, is anchored by two long-standing leaseholders, Woolworths and Dan Murphys, as well as 16 other speciality retailers who drive an estimated $2.3 million per year.
CBRE's national director investments Mark Wizel said the demand for well-positioned shopping centres with development or rental potential had reignited around Victoria.
“Retail has historically been regarded as the safe, defensive, investment with significant GLA leased to non-discretionary spend tenants, and that is absolutely the case, but the potential to add a mixed-use development in the centre of town down the track adds another very attractive string to their bow.”
Wizel marketed the retail asset alongside CBRE's Justin Dowers and Joseph Du Rieu.
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Bellarine Village is the second centre to sell this year in the Geelong region after Coles’ sale of Torquay Village shopping centre to Toorak-based investor David Feldman for $35 million.
CBRE's Justin Dowers said that Geelong is forecast to grow 32 per cent by 2036, adding that the Bellarine peninsula is expected to experience an even stronger rate of growth of 36 per cent by 2036.
“That is extraordinary growth and growth which will deliver the sort of catchment which underpins the most successful neighbourhood centres. And that is exactly what investors are looking for.”
Almost 130 individual enquiries were made in relation to the sale of Bellarine Village Shopping Centre, highlighting an active top end of the market with a large portion of transactions targeting neighbourhood centres.
“The fact that we are now seeing shopping centre investments within Geelong and the Bellarine Peninsula trade at similar returns and pricing levels to metropolitan Melbourne adds to the attraction,’’ said Dowers.
Recent regional shopping centre transactions in Victoria over the past six months include The Village Bacchus Marsh for $61.65 million, Maroondah Village for $18.8 million and the $43 million sale of Stockland's Highlands centre last month.