This article is from the Australian Property Journal archive
Lend Lease and its managed wholesale fund, Australian Prime Property Fund Retail have purchased the Pakenham Place shopping centre in Melbourne’s south eastern suburb for $60.5 million.
Lend Lease will own a 25% stake in the centre and will pay $15.12 million for its share. APPF will own the remaining 75% share and will contribute $45.37 million to the purchase.
The Pakenham Place shopping centre was previously owned by a privately owned company, the Leonora Group.
The shopping centre is located in the town centre of Pakenham, approximately 57 kilometres from the Melbourne CBD.
Pakenham Place comprises 16,000 sqm of space and is currently anchored by a Target discount department store, a Safeway and Coles supermarkets as well as other speciality stores and adjoining land.
In addition, the centre has parking for 750 cars.
Lend Lease’s chief executive of retail David Hutton said the purchase reflects the company’s strategy to actively pursue retail assets in strong growth areas.
“Pakenham Place shopping centre is in one of the highest growth areas of Melbourne and, via active management and expansion, we are confident the centre can provide significant community benefits, whilst delivering superior investment returns.
“Delfin Lend Lease has been active in Pakenham since 2001 and is currently developing the Lakeside Pakenham residential community in joint venture with Cardinia Shire Council, which will eventually be home to 6,500 residents,” he added.
Hutton said the primary trade area of the centre is forecast to grow at an average population growth rate of 6.0% per annum over the next 10 years.
“Pakenham has also been identified as a major activity centre under the State Government’s “Melbourne 2030 – Planning for Sustainable Growth” plan and is currently benefiting from significant road and rail transport improvements.” Hutton concluded.
APPF’s fund manager Tarun Gupta said the centre has significant expansion potential.
“Quality retail assets with the capacity to be expanded are scarce and we are pleased to have secured this opportunity for our investors,” he added.
Upon completion, the APPF Retail portfolio will comprise interests in 10 retail assets, with gross assets of approximately $2.5 billion.
Lend Lease will also undertake the property and development management of the asset.
By Kathryn O’Meara
