SHOPPING CENTRE SELLS FOR $36.5M:
NEWCOMB’S Bellarine Village shopping centre has sold for nearly $37 million in a deal with a Melbourne-based private investor.
The shopping centre, which derives about 80 per cent of its rental income from national tenants, is the second major neighbourhood shopping centre to sell in the Geelong region this year.
CBRE national director investments Mark Wizel, who brokered the deal with Justin Dowers and Joseph Du Rieu, said the property sold for $36.5 million.
Mr Wizel said demand for shopping centres, particularly well-positioned centres with development and rental growth upside, had seen no decline despite talk of an investment hiatus and ever tightening yields.
“Retail is, as ever, the darling of the investment market,” he said.
“If anything, there has been a new intensity in interest as investors focus not simply on secure lease covenants and rental returns but on genuine upside provided by prime city centre sites, which offer exceptional future development potential.
“Retail has historically been regarded as the safe, defensive investment with significant gross lettable area 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,’’ Mr Wizel said.
The 10,443sq m neighbourhood centre is anchored by Woolworths and Dan Murphys and includes another 16 specialty retailers including The Reject Shop, Woolworths Petrol Plus and Hungry Jacks, returning an estimated $2.3million in rent a year. That equates to a rental yield of 6.3 per cent.
The 2.3ha site has four street frontages, four access points and provides parking for 315 cars.
Mr Wizel said conditions were ripe for the Resofsky family, which bought the centre in 2009, to shop for buyers for their retail assets.
The sale comes as Colliers International is marketing Leopold’s Gateway Plaza shopping centre under the management of Vicinity Centres.
Gateway Plaza, anchored by Coles, Kmart, Bunnings and Aldi, was offered in March. It’s expected to attract interest around $120 million.
It’s the second sale after Coles’ sale of its Torquay Village centre to Toorak-based investor David Feldman for $35 million this year.
Bellarine Village has a 25year lease to Woolworths, 15year leases to Dan Murphy’s and Hungry Jack’s and fiveyear leases to The Reject Shop and Woolworths Petrol.
Other long-term tenants include Nardi’s Cellarbrations, Peak Pharmacy and Salon Rouge.