Developer sells $300m Melbourne shopping centre portfolio
Oreana has sold three unbuilt shopping centres as part of a four-property portfolio, in Melbourne, with an end value of c$300 million.
IFM Investors, which acquired ISPT in 2024, is the buyer, at a speculated blended six per cent yield.
In growth corridors, the properties include Botanical Village at Mickleham, Deanside Central at Deanside, Riverwalk Town Centre in Werribee and Eynesbury Village near Melton.
The transaction marks the first under a partnership between IFM, Oreana and retail fund manager Fawkner Property Group which introduced the deal.
Retail portfolio reweigh
ISPT held more than $20 billion of assets under management when IFM acquired it in 2024.
It has recently sold CBD assets including Midtown Melbourne on Bourke Street and a 75 per cent stake in Brisbane’s Uptown, formerly the Myer Centre.
Meanwhile it has been targeting neighbourhood shopping centres in high-growth suburbs.
“The future of retail growth sits with local and neighbourhood centres in high-growth areas,” IFM Investors executive director of Funds Management, Kate Mathewson, said.
“The ones that succeed will prioritise walkability, convenience, community connection and complementary non-retail uses that bring people together,” she added.
“This is an asset class that is resilient, essential and we believe, positioned to help us deliver for our clients and the millions of working people they represent,” according to the executive.
“With these four assets sitting in above average population growth corridors, local shopping offers a strong proposition to institutional investors” (continues below).
Funds-through deals
Botanical Mickleham opened in March, with 7400 square metres anchored to Coles.
There are also 25 specialty stores and an early learning centre.
The remaining three projects are under construction, due for completion by the end of next year. IFM is buying these on a funds-through basis.
Deanside Central will be the first local shopping centre for the region, with 8200 sqm.
Riverwalk Town Centre will contain 6400 sqm.
Eynesbury Village will span 6700 sqm.
Oreana acquired Eynesbury Village from Resimax Group in mid-July, part of a broader transaction covering four stages.
Managing director, Tony Sass, said “Oreana’s retail model is about more than just delivering a place to shop – it’s about creating a central hub in new communities where daily life is easier and more connected”.
It was advised by Stonebridge Property Group. Fawkner executive director Patch Garnaut added the transaction extends its relationship with IFM and Oreana after several acquisitions – all retail.
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