$88.1m Retail Centre Sale in Regional Victoria Indicates Strong Buyer Demand

Singapore-based Sim Lian - Metro Capital has secured Shepparton Marketplace in regional Victoria for $88.1 million in its latest Australian retail acquisition.

CBRE’s Simon Rooney and James Douglas negotiated the off-market sale of the prominent centre on behalf of Dexus Wholesale Property Fund.

The campaign attracted strong private and institutional investor interest, with the sale price reflecting a capitalisation rate of 6.25%.

“The level of buyer interest in the Shepparton Marketplace process demonstrates the continued depth of demand for quality sub-regional shopping centre assets, particularly centres offering value-add opportunities,” Mr Rooney said.

“There is immediate potential to undertake a targeted remix of the centre’s speciality tenants and to enhance the casual dining offer, while the large 122,900sqm site includes 61,700sqm of vacant land, providing significant scope for future development opportunities.”

The existing 16,535sqm centre is anchored by strongly performing Woolworths and Big W stores on leases until 2030 with further options.

It is the dominant sub-regional centre serving regional Victoria’s fifth largest city and benefits from its highly accessible Midland Highway location and proximity to complementary national retailers such as Bunnings, The Good Guys, Anaconda and Spotlight, drawing shoppers from a broad catchment area.

Mr Rooney said investors were attracted by the centre’s strong combined sales performance and exceptional income security of the major tenants Woolworths and Big W, coupled with the centre’s outstanding specialty productivity of $14,641/sqm, which was 66% above Urbis benchmark.

“The centre is situated in an expansive, densely populated trade area with a substantial retail expenditure pool, which is forecast to grow from $1.9bn to $3.0bn by 2036. The centre is also set to benefit from the Shepperton Southeast Precinct Structure Plan (PSP), which proposes an additional 2,500 dwellings for the catchment area, accommodating circa 6,000 residents,” Mr Rooney said