Dozen offers sees Victorian mall collect c$30m
The Bai Fu Xin family has divested Geelong West’s land rich Pakington Strand after eight years.
The Woolworths anchored mall, occupying a quarter of the 2.1 hectare site, in one of Geelong’s more prestigious suburbs, is speculated to be selling for just under $31 million, a sub 5.5 per cent yield.
It paid $31.8m – a 4.7pc passing return.
That seller, Charter Hall and Telstra Super, picked it up as part of a portfolio of eight Woolworths backed malls in 2011 – three years after it was completed.
Stonebridge’s Kevin Tong and Justin Dowers represented APH Holdings, which managed the asset for the Bai Fu Xin family.
The buyer is a local investor.
Dozen offers: agents
Zoned Mixed Use, Pakington Strand, with 5317 sqm at 95-103 Pakington Street, was marketed for its development upside – up to six floors could be considered for part of the 307 bay car park.
Woolworths’ lease includes turnover rent.
With 13 specialty stores, the weighted average lease expiry (by area) is 12.4 years (story continues below).
It is the fifth Victorian neighbourhood shopping centre to hit the market in the last 12 months.
A dozen offers came in following the close of an expressions of interest campaign.
“We continue to field strong depth of buyer interest from local and offshore investors as 2023 saw another year of limited neighbourhood shopping centre opportunities offered publicly,” Mr Tong said.
“Although the purchaser was based in Victoria, we witnessed strong competition from offshore investors with multiple groups forming our underbidders,” he added.
Neighbourhood shopping centre sales volume last year was 40pc below the (decade) average, according to the agent.
Nationally, this rate is 43pc, Mr Tong said.
Following the sale the vendor will focus on its $1b City Park project in Melbourne’s Forest Hill.
Subscribe to our newsletter at the bottom of this page.
