Two neighbourhood malls on the market for $65m
Two Woolworths-anchored neighbourhood shopping centres in Melbourne and Geelong, with a combined value of more than $65 million, have been listed for sale by wealthy families amid strong investor appetite for the non-discretionary retail assets.
The Singapore-based Chen family is selling Mordialloc Plaza, at 600 Main Street, in Melbourne’s south-east after owning it for 30 years.
Price expectations are above $35 million for the single-level, 4532-square-metre mall on a 6600 sq m site anchored by a full-line Woolworths Supermarket alongside 11 specialty shops and parking for 120 cars. The current Mordialloc Plaza Woolworths lease runs until 2025.
Fully leased, the mall brings in annual net income of $1.8 million, which equates to a yield of 5.1 per cent at the asking price.
In the Geelong bayside suburb of Newcomb, the Resofsky family is selling the Bellarine Village Shopping Centre, which it has owned since 2009 and which is expected to sell for about $30 million.
The 10,443-square-metre neighbourhood centre on a 2.3-hectare site on the Bellarine Highway is anchored by a Woolworths supermarket on a 25-year-lease and Dan Murphy’s liquor store on a 15-year lease, alongside 16 specialty retailers including The Reject Shop and Hungry Jack’s.
Bellarine Village brings in annual rental income of $2.3 million which equates to a yield of 7.7 per cent at the $30 million selling price.
Mordialloc Plaza is being sold by Mark Wizel, Lewis Tong and Justin Dowers of CBRE in conjunction with Knight Frank’s Ken Smirk, while the Bellarine Village Shopping Centre is being sold by Mr Wizel, Mr Dowers and Kevin Tong of CBRE.
Mr Wizel said investors were looking for successful neighbourhood shopping centres underpinned by strong population growth in their local catchment areas.
“Geelong is one of Victoria’s fastest-growing regions with a forecast 32 per cent increase in population by 2036. Mordialloc’s population is expected to grow 17 per cent to 189,967 by 2036,” he said.
The two new listings mean around $200 million worth of supermarket-anchored retail property assets in Victoria have been put on the market since February, including The Village Bacchus Marsh anchored by Coles, Aldi and Target Country being sold by Abacus Property Group with a $70 million price tag and Stockland’s Woolworths-anchored Highlands Centre in Craigieburn, which is asking about $40 million.
Also up for sale is the Coles-anchored Maroondah Village Shopping Centre in Croydon North which is owned by Toorak-based Peter Arvanitis, the founder of aged care operator and developer Estia Health and expected to sell for about $18 million.
Indicative of the appetite for non-discretionary retail property assets, a group of local investors acquired a Coles supermarket on a large site in Clayton in Melbourne’s south-east for $17.115 million on a yield of 2.75 per cent.
