Melbourne mall The Village Dandenong up for sale as retail market gets busy
Perth-based investor RG Property has decided to sell a $30 million-plus suburban Melbourne shopping centre, The Village Dandenong, as activity picks up in the retail real estate market.
The mall in Melbourne’s south-east is being brokered by CBRE’s Justin Dowers and Mark Wizel along with JLL’s Stuart Taylor, Jacob Swan and Stephen Bolton.
Developed only two years ago, the convenience-based neighbourhood mall is anchored by a full line Woolworths supermarket and BWS. There are 15 specialty retail tenancies.
It sits on a 18,790-square-metre land parcel and generates $1.8 million in income annually.
“RG Property have seen growth in the asset since 2015 and expect the purchaser will continue to enjoy growth with the entrance of Bunnings into the precinct,” said RG Property chief executive Rhett Williams.
There has been a run of strong sales of malls across Victoria and Melbourne especially in the past year, with Chinese buyers especially prominent.
Among those sales, last month the Arena shopping centre in Melbourne’s south-east was sold for $48 million on a 5.38 per cent yield.
“Yield compression has also been supported by the strength of the retail investment landscape in Victoria over the last 12 months with neighbourhood centres now regularly transacting at low 5 per cent yields,” said CBRE’s Justin Dowers.
“Investors are gradually resetting their return expectations to reflects a lower growth and lower return environment.”
