Retail property sales rise 30 per cent to $11 billion
Coles Group Property Developments has put its Aurora Village neighborhood centre in Melbourne’s north on the market, as both institutional and private investors drive near record retail transaction volumes, particularly in Victoria.
National retail property sales in the 12 months to June totalled $10.9 billion – up 30 per cent on the previous 12 months – with shopping centre sales up 86 per cent year-on-year and accounting for $6.8 billion, or 62 per cent of the total, according to CBRE’s associate director of research, Kate Bailey.
CBRE’s national director of investments, Mark Wizel, said there were a number of factors which had put retail back on the investment radar.
“There had been the perception in the market that online trade would significantly damage bricks-and-mortar assets and that sentiment, along with strong competition from the office market, was reflected in sales volumes last year.
“But centre managers have responded well to the challenge, primarily on the back of a new entertainment- and services-based tenancy mix, and consumers have shown a liking for the new mix, which is reflected, anecdotally, in higher foot traffic, and the steady improvement in retail trade figures.”
Wizel is managing the sale of the Aurora Village centre with Justin Dowers, CBRE’s Victorian director of retail investments.
The recently completed neighborhood centre boasts a double supermarket anchor, with a Coles and an Aldi. It returns more than $2.5 million per annum from its tenants, Coles (15-year lease) and Aldi (10 years) – together comprising 73 per cent of the centre’s 8284 square metre NLA – 16 specialty stores and a Coles Express Service Station (10 years).
The property will be sold by expressions of interest closing November 22.
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