Sought-after shopping centre tipped to fetch more than $45 million
Malls are in hot demand – from food-based to large format – as investors look to take advantage of strategic land holdings in high-growth locations.
Fabcot, Woolworths Group’s development business, is cashing in on pent-up demand by offering its near-new Cranbourne West Shopping Centre for sale, with an expected price tag of more than $45 million.
The sale comes after two large format retail centres in regional NSW sold for more than $40 million, highlighting the resilience of the sub sector.
Colliers’ head of retail middle markets James Wilson and Ben Wilkinson secured a $13.27 million sale of the newly built Dubbo Homemaker Centre to MPG Funds Management at a fully leased yield of 5.75 per cent.
Griffith Hometown was also sold late last year to Argus Property Partners in a $28.33 million deal negotiated by Colliers and Savills.
The Cranbourne property is the first new neighbourhood shopping centre to hit the Melbourne market since 2020.
The centre, which opened 50 km south-east of Melbourne in June 2020, is anchored by Woolworths and a BWS liquor outlet.
The sale includes 1.1 hectares of surplus land ready for development that has already drawn interest from national retailers for uses including a supermarket, childcare, fast food and fuel.
The 3.56-hectare centre is 100 per cent leased and is being offered with a new 10-year lease to its core tenant, with options to 2082. Speciality retailers have fixed annual rent increases of 4 per cent or more.
Stonebridge’s Justin Dower and Kevin Tong, together with Colliers’ James Wilson, Tim McIntosh, are running an expressions of interest campaign.
“Core neighbourhood shopping centres located in growth corridors of capital cities continue to be one of the most highly sought-after asset classes nationally,” Wilson said.
“We expect strong interest from a breadth of buyer profiles – local, private, developers, institutional and syndicate,” added Dowers.
