Stonebridge Property Group has transacted via an off-market deal, a neighbourhood shopping centre in Melton South for $43,000,000. Acting on behalf of a private family, the Melton Station Square Shopping Centre has sold on a 4.83% fully leased yield, further demonstrating the strong demand and yield compression that is occurring in the neighbourhood shopping centre sector.
Justin Dowers and Kevin Tong transacted the property off-market to a syndicate of locally based Asian investors.
Located in the major western growth corridor of Melton, the 1.39ha is anchored by a Coles and Liquorland and 12 specialty retail shops.
“The investor sentiment for neighbourhood shopping centres remains very strong and for good reason. The centres are performing better than they ever have and represent a very low risk investment option.” Mr Dowers stated.
The sale continues the trend of tightening yields amongst retail investments.
“Based on our recent experience with the sale of Melton Station Square and Woolworths Greenvale Lakes, our view is that yields for neighbourhood shopping centres have compressed in excess of 100 basis points in the past 12-18 months.” Mr Dowers insisted.
Mr Dowers added “Buyers are attracted to the longevity of supermarket tenants. Supermarket’s very rarely leave their premises which is a contrast to other property sectors where there is more risk.”
Stonebridge Asia Practice Director Kevin Tong added “The acquisition from a syndicate of local Asian investors is a sign of the continued demand and interest from this buyer pool. Whilst new international capital may have slowed we are still witnessing a strong depth of interest for locally based Asian groups many of whom have been investing in the country for several years.”
The sale of Melton Station Square Shopping Centre continues the trend of successful campaigns for the Stonebridge Property Group who have also recently just transacted the Woolworths Greenvale Lakes Shopping Centre for a 3.95% yield.
For more information, please contact the below: