Summerhill Shopping Centre, Reservoir, Sells For More than $18 Million
Reservoir’s Summerhill Village Shopping Centre, at 830 Plenty Road, was put to the market in August by private syndicate Viento Diversified Property Fund, managed by the Viento Group.
Viento Group bought Summerhill in 2002 for about $12.95 million.
The estimated sale price equates to a yield of about 8.2 per cent based on the property’s net annual income of just under 1.51 million.
Kelemen Commercial director Andrew Egan and Russell Vickers, and Knight Frank executives Tom Bite and Michael Hede marketed Summerhill Village, but declined to comment on any part of the deal when contacted by BusinessDay.
A private investor is believed to be the purchaser but this could not be confirmed.
Summerhill Village sits on a 1.9 hectare parcel of land, most of which has not been developed, and abuts two bulky goods facilities.
One of the more recent suburban shopping centre sales occurred in May, when the Olive Tree Shopping Centre in Lilydale, about 45 kilometres north-east of Melbourne, sold for $11 million.
Like Summerhill Village, Olive Tree has scope for redevelopment, and will benefit from planned recommendations by the Australian Competition and Consumer Commission grocery price inquiry released two months ago.
As part of this inquiry, large supermarket chains will have not be able to influence shopping centre owners from allowing competitors opening up nearby. Supermarkets will also not be able to stipulate a decrease in rent, should a competitor move in.
The ACCC proposals may suit shopping centre owners – particularly ones with an abundance of land around it – because they have two or three “anchor” supermarket tenants.
As well as Summerhill Village Shopping Centre, Viento Group is also selling an office building at 11 Queens Road, which it bought in 2004 for $19.5 million.
The fully-leased office with views over Albert Park Lake and Port Phillip Bay, was valued at $26 million at March 2008, according to Viento Group reports.
Viento is a boutique investment management firm with several syndicates of varying years. The fund was formerly known as WRF Securities.
According to its website, after Summerhill and 11 Queens Road, Viento will have just one Victorian property asset, an office building at 14 Queens Road. Its other assets include the Parksinson Shopping Centre in Brisbane, Queensland; Cambelltown’s City Centre and Bowral’s Oxley Mall Shopping Centre, in New South Wales; and The Devonport C-Max complex in Tasmania.
