Melbourne, July 18, 2017 – A NSW-based investor has acquired the Lakeside Square Shopping Centre in Pakenham for $30.38 million – bringing the total value of neighbourhood centre transactions in Victoria to more than $300 million since the start of 2016.
Opened in 2012, the Lakeside Square Shopping Centre is anchored by a 20-year lease to a full line Woolworths Supermarket and BWS, with an additional 14 specialty tenants and eight-doctor medical centre.
The 6,271sqm centre is located on a 25,080sqm land parcel adjoining the Cardinia Road Train Station and adjacent to the new Cardinia council offices – forming part of the Lendlease-developed Lakeside Estate.
CBRE’s Victorian Retail Investments team, comprising Mark Wizel, Justin Dowers and Kevin Tong, negotiated the sale, which reflected a yield of 5.77%.
“Non-discretionary shopping centres remain high on a broad range of investor wishlists as demonstrated by the sector’s strong activity this year. As has been seen in recent years, Victorian assets continue to attract the sharpest yields,” Mr Wizel said.
“Pricing has firmed for retail assets Australia-wide, particularly in Victoria where there continues to be strong interest from offshore investors, which are starting to shift their focus from development opportunities,” Mr Wizel said.
Commenting on the attraction of Lakeside Square Shopping Centre, Mr Dowers said Melbourne’s south-east had seen an upturn in activity over the past six months, with this sale marking the third neighbourhood shopping centre transaction during the period.
“Buyers are recognising the forecasted growth in housing and population as a major drawcard for investing in the region,” Mr Dowers said.
“According to recent data from the Australian Bureau of Statistics, Cardinia is the fourth fastest growing shire in the state and Casey is home to the third fastest growing suburb in Australia, Cranbourne East.”
Recent transactions in Melbourne’s south east.