This article is from the Australian Property Journal archive
CANBERRA’S Marketplace Gungahlin is the latest major shopping centre put up for grabs as over $1.1 billion worth of retail assets hit the market this week.
Retail fell out of favour early on in the pandemic as centres were shut and billions were wiped off the value of centres across the country. A suite of major sales at the end of last year breathed life back into the market as investors looked kindly on the stabilisation of retail valuations and the economic recovery, driving record retail investment of $12.7 billion in 2021.
Australian property group Vinta is hoping for more than $400 million for the strongly performing Marketplace Gungahlin sub-regional centre, situated 11 kilometres north of the Canberra CBD in one of the fastest-growing regions in Australia.
The 40,023 sqm centre features a line-up of Woolworths, Aldi, Kmart and Big W, alongside seven mini majors and 109 specialty tenancies, with a specialty productivity rate 19% above the Urbis average.
Marketplace Gungahlin was developed in 1998 before being extended and refurbished in 2006 and 2016. A further extension is due to be completed into 2023 that includes the introduction of a new Aldi supermarket.
CBRE’s head of retail capital markets, Pacific, Simon Rooney is managing the expressions of interest campaign, closing 12th May.
“Marketplace Gungahlin is one of the best performing, high growth sub-regional assets to come to market in many years, with a thriving major tenancy profile and robust specialty component, trading at well above industry averages,” he said.
Rooney said the comparative return profile for retail investments and significant asset value rebasing mark the retail sector as a compelling investment proposition.
Significant land releases are planned to accommodate Gungahlin’s forecast population growth of 2.0% per annum, growing the Centre’s main trade area to an estimated 187,560 people by 2031. Retail spending growth of 4.8% per annum is tipped for the same period, from $2.4 billion currently to $3.8 billion by 2031. Household income levels in the primary trade area are 26.9% above the Australian average.
Meanwhile, QIC is expecting $700 million for the Hyperdome in south east Queensland’s Logan, according to reports.
Jointly held by the QIC Property Fund and the QIC Town Centre Fund, the Hyperdome is on a 44-hectare site that includes over 13 hectares of ancillary land. It is anchored by Woolworths, Coles, and Aldi, an Event Cinemas, and Kmart and Big W.
Elsewhere, Lendlease has hopes in the mid $300 million range for Caneland Central, Dexus is shopping around a 25% share in Brisbane’s Indooroopilly shopping centre worth about $300 million, Perron Group is offering a half-stake in the Colonnades in Adelaide.
