Colin DeLutis spends $136.5m on west Melbourne mall

The asset covers a total 10.33 hectares abutting Caroline Springs Lake.

Lendlease managed Australian Prime Property Fund has sold Caroline Springs’ CS Square – three years after extending its lettable area 26 per cent.

The deal, with former Carlton Football Club vice president Colin Delutis, is worth $136.5 million.

The shopping centre is anchored by three supermarkets including Aldi.

It includes a 25,308 square metre complex on 9.05 hectares.

There are also two neighbouring development sites – each on prominent corners – all up offering 1.28ha.

Within the Caroline Springs Town Centre precinct, the shopping centre contains a 1603 sqm mixed-use building, CS Commercial, too.

The property’s southern boundary abuts Caroline Springs Lake.

Another part joins the WestWaters Hotel & Entertainment Complex.

There are 1253 car parks.

This week, Harvey Norman paid QIC Global Real Estate $97m for Watergardens Homeplace in Taylors Lakes – about eight kilometres north of Caroline Springs.

Colliers’ Lachlan MacGillivray sold both retail investments; CS Square was marketed in conjunction with Stonebridge’s Carl Molony.

CS Square: 29-35 Lake St, Caroline Springs

APPF has held CS Square since it was constructed 17 years ago.

In 2018, the landlord spent $45m on an extension.

It is anchored by three supermarkets – Aldi, Coles and Woolworths (story continues below).

The main complex contains 25,308sqm of lettable area.

Kmart will soon replace a Target tenancy.

The double storey complex also has offices.

Essential services or more multi-level commercial product could be considered for the development sites.

CS Square is about 21 kilometres west of Melbourne.

The sale price reflects a six pc passing yield.

Caroline Springs – formerly part of Deer Park – is 21 kms west of the CBD.

We’ve been following it for some time: buyer

Mr DeLutis said he has been following the performance of CS Square for some time.

The developer and investor once held Yarraville’s vacant Bradmill factory – in Melbourne’s inner west.

“We feel [CS Square] is a perfect fit for our high quality portfolio of convenience and service focused centres,” the DeGroup owner added.

“We also see a major opportunity to take advantage of the current market dislocation in pricing between sub-regional yields and bond rates, which we expect to continue for some time to come.

 “CS Square is a significant asset with exceptional growth potential in one of Melbourne’s key growth areas.

“The defensive nature of the asset is further strengthened due to its significant proportion of income derived from national businesses and importantly a centre Weighted Average Lease Expiry in excess of seven years”.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco