This article is from the Australian Property Journal archive
A TRIPLE supermarket town centre anchored by a Kmart in the Casey growth corridor is heading to the market.
Casey Central is anchored by Coles, Woolworths, ALDI and Kmart, with a combined major tenant WALE of 14.2 years, by income.
Lachlan MacGillivray, head of retail investment services at Colliers, has been assigned to sell the property by M&G Investments.
“Assets like Casey Central rarely come to market, being a triple supermarket-anchored town centre with a brand-new lease to Kmart, with relatively low site coverage of approximately 30% allowing an incoming investor ultimate flexibility to drive the long-term performance of the site,” said MacGillivray.
The centre’s tenancy mix leans strongly towards non-discretionary and service-based retailers, with around 59% of specialty GLA occupied by service, food catering and fast dining tenants.
“Investors are aggressively pursuing retail centres that offer these characteristics as witnessed in recent market transactions including CS Square, also in Victoria,” he added.
The town centre is situated in Narre Warren within the Casey Growth Corridor in Melbourne’s south east, one of the country’s fastest growing regions.
MacGillivray also managed the recent sale of Mildura Central to IP Generation for $81.1 million on a yield of over 9%, on behalf of Vicinity Centres.
While in regional Victoria investor appetite remains strong for neighbourhood shopping centres as two supermarket anchored centres entered the market in the Gippsland region, with both sales being managed by JLL.
“The super convenient local offering continues to increase its annual turnover from pre-pandemic levels and attract complimentary high calibre retailers,” said James MacKinnon, head of Australia, real estate at M&G Investments.
“Following a number of unsolicited approaches, we have decided to capitalize on current market demand and take Casey Central to market,” added MacKinnon.
An international expressions of interest campaign for Casey Central will launch in the coming weeks.
