Centro Pockets Nifty Profit From $30 Million Sale of Warringal Shopping Centre

HEIDELBERG’s Warringal Shopping Centre on Burgundy Road has been sold to private investors Tagon Administrators for $30 million.
 
The single-storey, 11,722 square metre complex is the latest to be offloaded by beleaguered shopping centre manager Centro, which paid $11.4 million for Warringal in 2001, according to the Property Council of Australia’s Shopping Centre Directory.

Tagon, a consortium headed by Leonard Kipen, purchased Warringal at a discount to Centro’s $32.9 million December 2008 book value. A $30 million sale price reflects an 8.9 per cent yield, based on the centre’s annual rental capacity of $2.66 million.
 
Centro recently made $39 million from the sale of its Centro Ringwood Shopping Centre, and $17.25 million from the sale of Centro Hamilton. It’s expected to make another $12 million from the sale of its Centro Rosebud centre, and about $12.5 million from the sale of Centro Meadow Heights, about 17 kilometres north of town.