An ageing neighbourhood shopping centre in Northcote, Victoria, has been sold to an unidentified investor for $34 million.
Northcote Central is a 6657 square metre shopping centre located on the corner of High and Separation streets. The price paid represented a particularly tight yield of 3.47 per cent.
The total land parcel is 9,205 square metres, which was thought to be attractive to a possible residential developer. It is located on a high profile inner metropolitan corner about only five kilometres north of Melbourne’s CBD.
Northcote Central is anchored by tenants Aldi, Lincraft and The Reject Shop plus 14 specialty shops. Neighbouring the property is the larger Northcote Plaza Shopping Centre which features two Coles supermarkets.
The agents were CBRE’s Mark Wizel, Justin Dowers and Kevin Tong, who marketed the property based on its underlying land value suitable for high density residential and/or substantial retail development.
The 27-year-old centre is not fully let which accounts partly for the low yield on the sale, plus the development value of the land holding. The site was previously occupied by the now demolished Carters Arms hotel.
[Related reading: Fitzroy’s Piedimonte Supermarket Proposed $45m Upgrade]