This article is from the Australian Property Journal archive
ABACUS Property Group is set to make a tidy gain from the sale of the Village Bacchus Marsh shopping centre, which is expected to fetch around $70 million.
Abacus acquired the sub-regional asset in July 2013 for $31.6 million on a estimated fully leased net income of $2,887,000 and completed a major refurbishment midway through 2017.
The single level 16,000 sqm centre now has the potential to return a fully leased net income of circa $4.5 million, boasting more than 60 tenants and is anchored by Coles, Aldi and Target Country, along with mini-majors Kaisercraft, The Reject Shop, Anytime Fitness, Nova Pharmacy and The Elms Medical Centre.
Coles has a 15 year lease, while Aldi, Nova, and Elms all have ten year terms, with options. Discussions have also been had with another major national brand supermarket operator, regarding a way in which it could be accommodated within the existing footprint.
The 4.39 hectare, central township, site has four street frontages, six access points and 714 parking spaces.
CBRE’s Mark Wizel and Justin Dowers who handled the sale back in 2013, has again been appointed to sell the centre by Abacus.
Wizel said following completion of the comprehensive rejuvenation program, the centre had undergone major capital expenditure from key tenants Coles and Aldi who refitted their stores to the best-in-class supermarket offerings.
He added that he was expecting a strong market response from a wide range of shopping centre buyers who were either looking to sit on the current asset and capitalise on the hard work undertaken by the vendor, to those that may wish to look at exploring the idea of making it a Super convenience shopping centre by adding a third national brand grocer to the mix.
Wizel would not be drawn on price, however industry sources told Australian Property Journal, the asset could fetch around $70 million on a passing yield of around 6.1%.
Bacchus Marsh, the largest town in the Moorabool Shire, has a catchment ranked in one of the top three of Australia’s regional housing markets suited for family living, with the population of Moorabool expected to grow by a massive 56 per cent from 34.030 in 2018 to 53,270 in 2041.
Abacus’ chief investment officer and incoming CEO Steven Sewell said the centre had performed in line with expectations following an increase in net income via a leasing and re-positioning strategy.
“The Village Bacchus Marsh has performed exceptionally well since the major capital works were completed, and following a portfolio review it has been decided to now focus our resources on the active redevelopment projects in Brisbane, the Gold Coast and in Sydney,” Sewell said.
The Bacchus Marsh divestment follows Abacus Property Group’s $93.5 million purchase of 452-484 Johnston St Abbotsford last month in an off-market deal for $93.5 million brokered by Wizel with Lewis Tong and Kiran Pillai.
Late last month, Abacus put the Maroondah Village shopping centre in Melbourne’s north-east on the market, which is tipped to fetch around $20 million.
Australian Property Journal
