The flurry of Victorian shopping centres changing hands looks set to continue with the latest acquisition of Mornington Village.
A syndicate of Chinese investors have spent $39.38m to secure the shopping centre located on the Mornington Peninsula.
The deal reflected a 5.26 per cent yield for the 8,000 square metre neighbourhood centre which is anchored by a Woolworths supermarket, an Aldi and 15 speciality shops.
The property was purchased in 2014 by an accounting firm for $25.8 million.
The deal was brokered by CBRE director Mark Wizel with Justin Dowers and Kevin Tong.
“Eighteen months ago yields for this retail asset class were heading into 6 to 6.5 per cent territory and the question was how low can they go? Well, they have now firmly settled on an average marginally above 5 per cent,’’ Wizel said.
“Victoria is out in front on this and that is, in no uncertain terms, due to population growth which has seen the state outpace all others.”
The deal follows Woolworths’ acquisition last week of the Mordialloc Plaza for $41 million and a string of other neighbourhood centre sales in Victoria this year that transacted on similarly strong prices.
Related reading: Vicinity Offloads $1 Billion of Shopping Malls
Robina's Easy T Centre has been sold by Clarence Property to an undisclosed Gold Coast-based investor for $35.8 million.
The Easy T Centre was developed by Robina Land Corporation in association with Robina Projects Australia and was purchased by Clarence Property for its Westlawn Property Trust.
The latest deal – which hasn't settled yet, was brokered by Knight Frank's Mark Witheriff and James Branch in conjunction with CBRE's Michael Hedger and Joe Tyran.
The Easy T Centre which spans 5,880sq m, includes the Easy T Medical Centre, Spano’s Supa IGA supermarket and 40 speciality retailers.
The centre was originally purchased by Clarence Property for $31.6 million in 2006 and generates a rental income of $2.5 million per year.
Clarence Property has been quick to move on retail anchored property having recently purchased The Zone Shopping Centre in Underwood for $31.25 million, reflecting the surge in retail centre demand.
“Neighbourhood convenience centres – particularly those positioned in high growth areas – are being taken to market and snapped up quickly,” CBRE's Joe Tynan said.
“Easy T Centre’s main trade area is expected to grow by about 13,000 people by 2031, and there’s potential for the purchaser to make a development application for residential apartments within the Easy T site.”
