SOLD | Sharp yield for Victorian Woolworths-anchored neighbourhood shopping centre

Demand remains strong for high quality neighbourhood centres

MELBOURNE – Stonebridge and Colliers have recently sold the high-performing Pakington Strand Shopping Centre, selling on a benchmark yield of sub-5.50 per cent. The sale was managed by Stonebridge’s Kevin Tong and Justin Dowers with Colliers’ Tim McIntosh and James Wilson in conjunction on behalf APH Holding who acquired the centre in 2016.

Located in Victoria’s largest regional city, the 5,317sqm centre comprises a high-performing full-line Woolworths supermarket paying percentage rent and supported by 13 speciality tenants on a 2.1ha mixed-use site with 307 on-grade car spaces.

Pakington Strand is located in Geelong West, one of Geelong’s wealthiest suburbs just 2km from the Geelong CBD and 76km south-west of the Melbourne CBD. The centre is prominently positioned on the popular Pakington Street retail strip, boasting a long- WALE [weighted average lease expiry] of 12.4 years by area and returning a fully leased net income of approximately $1.7 million at the time of sale.

Stonebridge Partner Kevin Tong commented, “We continue to field strong depth of buyer interest from local and offshore investors as 2023 saw another year of limited neighbourhood shopping centre opportunities offered publicly on market. Although the purchaser was based in Victoria, we witnessed strong competition from offshore investors with multiple groups forming our underbidders.”

The high profile campaign, representing only the fifth neighbourhood shopping to be brought to market in Victoria last year generated in excess of 300 inquiries across both agencies with a dozen offers received at the close of the campaign.

Colliers’ Director, Tim McIntosh, said, “The benchmark result and depth of interest in Pakington Strand from private and offshore investors, listed and unlisted groups as well as developers reinforces the resilient buyer demand for well credentialed Victorian neighbourhood shopping centres.”

“The centre was unconditionally sold to a high net worth private investor on a yield below 5.50% shortly after a two-round process at the end of the campaign.” McIntosh added.

In 2023, there was just 5 recorded sales of neighbourhood centres across Victoria, 40% down on the ten-year Victorian average and consistent with the national theme showing a 43% reduction in transaction volumes over the same period. Both Stonebridge and Colliers anticipate an increase in supply for the year ahead which will assist in alleviating the depth of investor demand.


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At Stonebridge Property Group, our multi-disciplinary team works together to achieve successful outcomes for our clients. With the collective intelligence of multiple experts working together, informed by deep industry knowledge, we will be there every step of the way – whether we’re negotiating a sale or positioning you for growth.

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