No sooner has the ink dried on the sale of one investment-grade shopping centre in Drysdale, near Geelong – has another been listed for sale.
The Drysdale Village Shopping Centre (pictured top and left), which is anchored by a Woolworths supermarket, is expected to sell for more than $15 million.
The listing comes four months after rival supermarket Coles banked about $25 million selling a near-new outlet in the precinct on a leaseback.
Drysdale Village, at 16 Wyndham Street, about 22 kilometres east of Geelong, is owned by private investor Irving Birch.
Across one level, the neighbourhood shopping centre includes 3130 square metres of retail space and sits on an 8349 sqm site.
The fully-leased asset returns $990,442 in annual rent from seven speciality stores and Woolworths. The supermarket is committed to a 20 year lease expiring in 2035.
The listing comes four months after Charter Hall paid $117 million for the 33,510 sqm Leopold Gateway Plaza, about 16 kilometres west of Drysdale.
In May, a Melbourne-based private investor paid $36.5 million for the 10,443 sqm Bellarine Village Shopping Centre, in Geelong’s inner east.
At the start of the year Coles sold the Torquay Village shopping centre (pictured, right) to Toorak-based businessman David Feldman for $35 million, a deal which reflected a 5.9 per cent passing yield.
Mr Dowers said Drysdale Village’s strong lease profile and location, within 20 minutes of Geelong with is rapidly rising population, makes it a compelling prospect for potential purchasers.
“Geelong is one of Victoria’s fastest growing regions with a forecast 2 per cent increase in population by 2036 while the Bellarine Peninsula is expected to experience an even stronger rate of growth delivering the sort of catchment which underpins most neighbourhood shopping centres,” Mr Dowers said.
“We are also seeing shopping centre investments in the Geelong region trade at similar returns and pricing levels to metropolitan Melbourne and that is very attractive to investors”.
“There is no doubt that Geelong and surrounds is now firmly on the radar of serious investors as it is for Melbourne residents seeking affordable housing options,’’ Mr Wizel added.
Last week we reported that Coles Property Group had listed the Aurora Village shopping centre, in Epping, about 20 kilometres north of Melbourne. Offered with a leaseback this asset is expected to trade for more than $40 million.