Wyndham Vale Square and Drouin Central have been sold in the latest run of successful neighbourhood shopping centre transactions to private investors, demonstrating the ongoing demand in this retail investment sub-sector.
The sales were brokered by JLL’s Stuart Taylor, Tom Noonan and Sam Hatcher via public expressions of interest campaigns.
Wyndham Vale Square is in Melbourne’s outer western suburbs and Drouin Central is located in a regional town in Victoria’s east. Both assets are anchored by Woolworths supermarkets and supported by a mix of non-discretionary specialty retailers.
The assets were sold for a combined value in excess $45 million, and acquired by local and interstate private investors.
-
- Drouin Central is located in a regional town in Victoria’s east
-
- Drouin Central is located in a regional town in Victoria’s east
Taylor said: “Both properties were acquired by new entrant buyers, with enquiry and bidding levels well above what we typically see in these sale processes.”
“We attribute the heightened interest to the defensive quality of the income profiles on offer, with private capital looking to the neighbourhood shopping centre sector as an attractive balance of security and yield,” said Taylor.
A total of $276 million of Victorian neighbourhood shopping centres transacted in 2023, up 158% on the record low year of 2022. However, still down considerably (53%) on the highs of 2021.
Wyndham Vale Square is located in Melbourne’s outer western suburbs
Of the neighbourhood centres that did transact in 2023, a significant 75% of these were situated within Metropolitan Melbourne, with just two centres – Torquay Village and Drouin Central – transacting in Regional Victoria.
Noonan said: “We expect to see elevated activity in this sector in 2024, with pricing adjustments occurring and significant depth in demand evident from private capital.”
