Focus on neighbourhood shopping centres
The 7963-square-metre Mornington Village centre in Main Street is anchored by a Woolworths supermarket and contains a full-line Aldi store, Reject Shop and 15 specialty shops. The site has 55 undercover and 455 open-air car spaces.
A number of neighbourhood shopping centres have sold over the past year but most, about 86 per cent, changed hands as part of a portfolio and were not offered as individual sales, selling agent CBRE's Mark Wizel said. He said the Mornington Village centre could sell for $25 million-plus.
Heightened demand from private and institutional investors for neighbourhood shopping centres was driving MAB Fund's decision to divest, general manager Nick Gray said.
Investor interest in the sector has grown, with research showing neighbourhood centres have bucked this year's trend towards weaker overall retail growth.
Urbis' Retail Averages 2013 report found that, Australia-wide, medium-size suburban shopping centres focusing on food, convenience and everyday shopping grew 3.4 per cent over the year, outperforming their major suburban cousins, whose turnover expanded by 1.4 per cent.
Declines in department store turnover held back the performance of major shopping centres, the report found.
Sales of sub-regional shopping centres have also been strong nationally and are expected to surpass last year's total of $983 million transactions, according to Jones Lang LaSalle.
The Bendigo Marketplace shopping centre is on the market and could sell for more than $160 million.
JLL's head of retail investments, Simon Rooney, said a growing pool of investors was targeting the sub-regional asset class.
He said the Marketplace's location as the only sub-regional centre in central Bendigo and its development potential with six adjoining assets included in the offer was likely to result in it being "competitively pursued by institutional investors".
The centre includes a Big W, Woolworths, Dick Smith and Best & Less.
Frequently Asked Questions about this Article…
Investors are increasingly interested in neighbourhood shopping centres because they focus on non-discretionary retail assets, which have shown resilience and growth. These centres, which emphasize food, convenience, and everyday shopping, have outperformed larger suburban centres in terms of growth.
Investors are increasingly interested in neighbourhood shopping centres because they focus on non-discretionary retail assets, which have shown resilience and growth. These centres, which emphasize food, convenience, and everyday shopping, have outperformed larger suburban centres in terms of growth.
The Mornington Village shopping centre is attractive due to its strong anchor tenants like Woolworths and Aldi, along with 15 specialty shops. Its strategic location and ample parking space make it a desirable asset for investors looking for stable returns.
The Mornington Village shopping centre is attractive due to its strong anchor tenants like Woolworths and Aldi, along with 15 specialty shops. Its strategic location and ample parking spaces make it a desirable asset for investors looking for stable returns.
Neighbourhood shopping centres have outperformed major suburban centres, with a growth rate of 3.4% compared to 1.4% for larger centres. This is largely due to their focus on essential goods and services, which remain in demand even during economic downturns.
Medium-sized suburban shopping centres have outperformed major ones, with a growth rate of 3.4% compared to 1.4% for larger centres. This is largely due to their focus on food, convenience, and everyday shopping, which are less affected by economic downturns.
The Mornington Village centre is expected to sell for over $25 million, reflecting the strong demand and value of neighbourhood shopping centres in the current market.
The sale of neighbourhood shopping centres like Mornington Village is driven by strong demand from both private and institutional investors. These investors are attracted to the stable and growing returns offered by non-discretionary retail assets.
Sub-regional shopping centres are gaining attention because they offer development potential and are often the only major retail hubs in their areas. This makes them attractive to institutional investors looking for long-term growth opportunities.
The Mornington Village shopping centre is expected to sell for over $25 million, reflecting its value as a well-located and well-tenanted retail asset.
The Bendigo Marketplace shopping centre is on the market due to its unique position as the only sub-regional centre in central Bendigo, along with its development potential. These factors make it highly appealing to institutional investors.
The performance of department stores has negatively impacted major shopping centres, as declines in department store turnover have held back overall growth in these larger retail environments.
Sales of sub-regional shopping centres have been strong nationally, with expectations to surpass last year's total of $983 million in transactions. This indicates a robust market for these types of retail assets.
The Bendigo Marketplace shopping centre is significant because it is the only sub-regional centre in central Bendigo, with development potential and six adjoining assets included in the offer. It is expected to attract competitive bids from institutional investors.
Anchor tenants like Woolworths and Aldi play a crucial role in the attractiveness of shopping centres by ensuring a steady flow of customers, which benefits all retailers within the centre. Their presence is a key factor for investors seeking reliable returns.
Trends influencing the retail investment market in Australia include a shift towards non-discretionary retail assets, strong performance of medium-sized suburban centres, and increased investor interest in sub-regional shopping centres due to their growth potential and stability.
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