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Victorian Neighbourhood Shopping Centres Chasing Investor Demand

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Two Victorian shopping centres anchored by Woolworths supermarkets have hit the market with a combined value of more than $65 million.

The assets are likely to cash in on investor interest in quality neighbourhood retail assets strengthened by secure leases and strong underlying land value.

Mordialloc Plaza has been offered for sale by its owners, a Singaporean family who have owned the property for 30 years and are expecting above $35 million for the asset.

Situated on a 6,600sq m site at 600 Main Street, the single level, 4,532sq m centre is anchored by a full line Woolworths Supermarket and access to 120 car spaces.

The property will be sold with an estimated net income, fully leased, of $1.8 million, with a lease to Woolworths expiring in 2025 including three, seven-year options.

Related reading: Stockland Unveils Largest Ever Retail Development

CBRE national director investments, Mark Wizel, said the Plaza offered a prized retail asset in a very tightly held precinct.

“Mordialloc Plaza includes a comprehensive mix of tightly held commercial and retail tenancies, including national tenants, with a very low vacancy rate,” Wizel said.

Also offered for sale is the family-owned Bellarine Village Shopping Centre located on the Bellarine Highway.at Newcomb, featuring a 25-year lease to Woolworths and a 15-year lease to liquor retailers Dan Murphy’s

The 10,443sq m neighbourhood centre is anchored by Woolworths and Dan Murphy’s and includes another 16 specialty retailers including The Reject Shop (5-year lease), Safeway Petrol Plus (5 years) and Hungry Jacks (15 years), returning an estimated $2.3 million per annum.

Related reading: Sorrento Prime Retail Asset Blitzes Expectations as Yields Tighten

mordialloc plaza

Also, being offered through CBRE, the vendors have price expectations above $30 million for the centre.

“Geelong is one of Victoria’s fastest growing regions with a forecast 32 per cent increase in population by 2036 and Bellarine Peninsula is expected to experience an even stronger rate of growth of 63 per cent by 2036,” CBRE’s Wizel said.

“That is extraordinary growth and growth which will deliver the sort of catchment which underpins the most successful neighbourhood centres.”

A tight yield of just 2.57 per cent was realised with the recent record sale of a stand-alone Coles supermarket at Clayton. CBRE said there was increased demand for safe haven retail investments like supermarkets across Australia and more specifically in Victoria.

ASX-listed property group Abacus has listed The Village Bacchus Marsh and is expecting up to $70 million for the Coles- and Aldi- anchored centre with 68 specialty shops, which is also located in a fast growth region.

The Maroondah Village Shopping Centre in Melbourne’s north-east is being offered for sale by a private vendor two years after it was last transacted for $13.3 million. It is now expected to realise above $18 million.

Stockland is expecting around $40 million for its Woolworths-anchored neighbourhood shopping mall in its Highlands community in outer Melbourne’s Craigieburn.

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Article originally posted at: https://theurbandeveloper.com/articles/victorian-neighbourhood-shopping-centres-chasing-investor-demand