The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
RetailStaff WriterWed 25 May 16

Victorian Shopping Centre Development Site Sells To Interstate Developer

i

Retail property investors have further demonstrated their confidence in the Melbourne retail sector with the sale of the Aston Square Shopping Centre development site for over $11 million to an interstate developer, representing a rate of $350psm.

The Aston Square development site is a permit approved land parcel in Craigieburn, approximately 35km north of the Melbourne CBD and with a precinct structure plan approved site for a 6,700sqm shopping centre.

This sale represents the first neighbourhood shopping centre development site sold in 2016 following the sale of Delacombe Town Centre late last year for $20 million to local builders H. Troon.

CBRE’s Victorian Retail Investments team, comprising Mark Wizel, Justin Dowers and Kevin Tong, negotiated the sale on behalf of the vendor, WA based developer Peet Limited.

Director Justin Dowers said, “During the campaign we noticed not only known developers but also an increased number of retail property investors, who due to the lack of available shopping centres available for sale on the market were turning to shopping centre development as a way of holding these assets.

“As the yields for built neighbourhood shopping centres continue to compress, the value for retail development sites are increasing substantially, very similar to what has been experienced in the residential site market over the last five years."CBRE State Director Mark Wizel said the sale of Aston square demonstrates the ongoing keen interest that buyers both local and offshore have for retail sites. “Asian developers are beginning to move into the retail development site space, which we witnessed in Aston Square, as a diversification strategy away from pure residential, especially developers from Mainland China and Malaysia.”

Mr Dowers said, "There was no pre-commitment from a major tenant however the bidders took comfort in the high population growth that Craigieburn is experiencing."“Private and institutional developers are becoming more active in the retail development space, which was previously dominated by the major supermarkets, as lenders are having a greater interest in funding these retail developments,” Mr Wizel said.

The campaign was keenly contested with eight offers registered at the close of the expressions of interest process.

Mr Dowers said the appetite for retail development sites was being aided by declining vacancy rates, rental growth (national average 1.2%) and supermarket sales growth (national average 2.6%). These fundamentals have propelled retail to become the most attractive asset class in 2016.

“Across the retail sector tenant demand continues to be strong relative to the limited supply in the market which has led to record low vacancy rates, with Melbourne being only 2.5% vacant. When coupled with the increasing retail spend of consumers we have a market which is underwriting the demand for more retail developments across the board.”

RetailAustraliaReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
View All >
A rendering of the three-storey apartment project Arca by Red & Co at Stafford near Brisbane.
Residential

‘Confident’ Red & Co Starts Work on Stafford Apartments

Marisa Wikramanayake
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
A rendering of the proposed retail, office and accommodation building along Gawler's main street. Source: John Byleveld Architects
Development

SA Developer Taps into Gawler Accommodation Demand

Leon Della Bosca
As interest in the SA capital’s north continues to grow, plans have been revealed to help reinvigorate a historic main s…
LATEST
A rendering of the three-storey apartment project Arca by Red & Co at Stafford near Brisbane.
Residential

‘Confident’ Red & Co Starts Work on Stafford Apartments

Marisa Wikramanayake
2 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
A rendering of the proposed retail, office and accommodation building along Gawler's main street. Source: John Byleveld Architects
Development

SA Developer Taps into Gawler Accommodation Demand

Leon Della Bosca
3 Min
Industrial

Cadence Nabs Logistics Portfolio for $170.5m

Taryn Paris
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/victorian-shopping-centre-development-site-sells-to-interstate-develope