This article is from the Australian Property Journal archive
HABEN Property Fund has acquired the Croydon Central shopping centre in Melbourne’s east from PCL for over $40 million.
JLL`s Simon Rooney exclusively negotiated the sale on behalf of PCL. The sale price reflects a fully leased initial yield of 6.95%.
Croydon Central is anchored by a Coles supermarket, Aldi supermarket, one mini major, 31 specialty tenancies, three kiosks and four ATMs, providing a total GLA of 9,588.7 sqm and car parking for 768 vehicles.
Rooney said the neighbourhood shopping centre is strategically positioned for redevelopment with rezoning of the entire site to a `Commercial 1 Zone`.
“Shopping centres with high grocery and food retailing exposure have continued to perform well. Retail spending within the non-discretionary food category has grown by 4.7% year on year as at May 2015, and 4.2% per annum over the last five years – faster than all other major retail categories except for cafés, restaurants and take-away food (5.1% p.a.),” he added.
Rooney said total neighbourhood transactions for 2015 year to date have reached $873 million across 31 transactions, already exceeding the annual long-term average of $800 million.
JLL Research shows neighbourhood yields nationally range between 6.25% and 9.25% and a weighted average mid-point of 7.55% as at Q2 2015.
“Volumes reached a record $1.9 billion in 2014 up 49% from $1.3 billion in 2013. The number of neighbourhood transactions also increased very significantly in 2014, having risen to 71 transactions from 43 in 2013.
“We continue to see robust demand for assets from a widening range of institutional and private investors. The heavy focus on the non-discretionary based neighbourhood sector at present reflects the attractiveness of defensive assets which provide long term stable income returns and strong potential for capital growth.” Rooney said.
Australian Property Journal