Buyers shopping for centres
The centre, on the corner of Hogans and Derrimut roads, has a Woolworths supermarket, nine shops and a Dan Murphy's liquor outlet.
It was transacted between two private investors on an initial yield of 7.37 per cent, said CBRE.
Agents say private buyers have been emboldened by falling interest rates as the spread between yields and debt becomes more attractive.
Shopping centre tenants were also more comfortable about expanding their businesses which was boosting the confidence of owners and buyers, they suggest.
There is a strong feeling retail tenants have stabilised their businesses, said CBRE's Mark Wizel who, along with Justin Dowers, negotiated the Hogan's Corner deal.
"The Victorian retail investment market has witnessed consistent transactions at sharper yields than interstate benchmarks," Mr Wizel said.
One other neighbourhood centre has been sold this year, the development-ready Summerhill, at 850 Plenty Road, Reservoir. It was brought by private investor Les Smith for $19 million.
Several sub-regional centres have changed hands including Centro's Cranbourne and Karingal shopping centres, of which a 50 per cent interest was sold as part of portfolio to ISPT. The sale follows a similar trend last year when most neighbourhood centres were sold to private interests, Colliers retail investment services executive Tom Noonan said.
"Private investors bought everything last year bar one [Rosebud Central Shopping Centre, which was purchased by the local council]," he said.
"Last year, a number of sales didn't proceed because of pricing. This year we'll start to see some yield comprehension," he said.
At least five other neighbourhood or sub-regional centres are for sale.
Lend Lease is selling Pakenham Place for an undisclosed price and asking about $400 million for its Greensborough Plaza centre.
A private investor is selling Station Square Shopping Centre, in Melton South, for about $10 million and another is offering the Bacchus Marsh centre for about $30 million.
As well, MAB Corporation has put its University Hill, Bundoora development up for sale for about $40 million.
Hogans Corner was sold by private company Nobleplace Pty Ltd, a property title search reveals. The identity of the buyer, another private investor, has not been disclosed.
Property sale prices
Hogans Corner Shopping Centre (right) $25,550,000
Keilor Downs Plaza $67,000,000
Shepparton CBD retail portfolio $24,500,000
Bunnings Echuca $8,550,000
Bunnings Bairnsdale $8,207,000
Torquay Central Shopping Centre $14,000,000
850 Plenty Rd, Reservoir $18,700,000
Total Value $166,507,000
SOURCE: CBRE
Frequently Asked Questions about this Article…
Hogans Corner in Hoppers Crossing sold this week for $25.55 million. The neighbourhood centre — on the corner of Hogans and Derrimut Roads — includes a Woolworths supermarket, nine shops and a Dan Murphy's liquor outlet. CBRE reported the transaction was between private investors and recorded an initial yield of 7.37%.
The article says private buyers have been emboldened by falling interest rates, which make the spread between yields and debt more attractive. Agents also note retail tenants appear more comfortable expanding, and that stabilised tenant trading is boosting confidence among owners and buyers.
According to the article, sharper yields are encouraging transactions — CBRE noted Victorian retail deals are trading at sharper yields than interstate benchmarks. The improved spread between yields and borrowing costs has helped private investors pursue neighbourhood and sub‑regional centres.
The article lists several recent sales, including Keilor Downs Plaza ($67,000,000), Shepparton CBD retail portfolio ($24,500,000), Torquay Central ($14,000,000), Bunnings Echuca ($8,550,000), Bunnings Bairnsdale ($8,207,000) and 850 Plenty Road, Reservoir (reported around $19 million / listed as $18,700,000). Total value of the listed sales was $166,507,000.
Key names in the article include CBRE (agents Mark Wizel and Justin Dowers), Colliers (Tom Noonan), Centro and ISPT (owners in a portfolio deal), Lend Lease, MAB Corporation, Nobleplace Pty Ltd (the seller of Hogans Corner), Woolworths and Dan Murphy's. Private investors such as Les Smith are also referenced.
The article notes several centres for sale: Lend Lease is selling Pakenham Place (price undisclosed) and is asking about $400 million for Greensborough Plaza; a private investor is selling Station Square Shopping Centre in Melton South for about $10 million; another is offering Bacchus Marsh for about $30 million; and MAB Corporation has put its University Hill, Bundoora development up for sale for about $40 million.
Hogans Corner was sold by private company Nobleplace Pty Ltd, according to a property title search. The buyer was another private investor and has not been publicly disclosed in the article.
Colliers’ retail investment executive Tom Noonan is quoted saying private investors bought nearly all neighbourhood centres last year (bar one, Rosebud Central Shopping Centre, which was purchased by the local council). He also noted that some sales failed to proceed last year because of pricing, and that this year there is movement toward yield comprehension.
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