Metcash capitalises on buyer demand with $20m retail deal

​Brisbane, 15 April 2013- Leading wholesale distribution and marketing company Metcash, has sold Rochedale Shopping Village in Brisbane for $20 million to an investment fund established by neighbourhood centre specialist Hadley Green. Sashi Makkapati and Steve Lerche of CBRE brokered the deal off-market.

“Investor demand for well-located and strong performing neighbourhood centres remains high, as the sale of Rochedale Shopping Village demonstrates,” Mr Makkapati said.

Mr Lerche said investors were particularly focused on centres which were anchored by an established supermarket operator and where a high proportion of the specialty tenants had a non-discretionary retail offering.

“This appears to the right mix for investors looking for secure and sustainable rental returns,” Mr Lerche said.

“A number of high net worth private investors and investment syndicates are actively seeking this type of retail investment, particularly in the sub $20 million price bracket.” Mr Makkapati added.

Rochedale Shopping Village is a neighbourhood shopping centre anchored by a full line Drake’s SUPA IGA supermarket and 21 specialty shops. Located in the suburb of Rochedale South, some 18km south-east of the Brisbane CBD, the Underwood Road centre provides a food and convenience based retail offering to the surrounding residential suburbs.

The centre, which has a gross lettable area of 5,740sqm with parking for 290 cars, is situated on a large site of 21,823sqm. At the time of the sale, the centre was fully leased to national and local specialty retailers.

Metcash CEO Andrew Reitzer said the sale was consistent with Metcash’s strategy.

“The sale represents our commitment to shareholders unlocking capital from non-core assets and investing.” Mr Reitzer said.

It is the third neighbourhood centre acquired by Sydney based Hadley Green Investment Group in the past 2 years.  In June last year, Hadley Green acquired another IGA anchored centre, Norman Gardens Shopping Centre in Rockhampton for $11.05 million and Centro Birralee for $11.7 million in July 2011.