ISPT to Sell St Helena Shopping Centre For $27M

ISPT chief executive officer Darryl Browning confirmed the 4,944 square metre shopping centre is in negotiations with an exclusive buyer, but declined to elaborate on that buyer’s identity, or price.

St Helena Marketplace sits on a massive 1.8 hectare block of land on the cusp of Greensborough and Diamond Creek. The fully leased shopping centre sold on a low market yield of about 6.7 per cent, based on its annual rental return of $1.796 million per annum.

ISPT paid $17.1 million for the shopping centre in 2002, on a yield of 8.35 per cent. Much of the property’s value lies in its redevelopment potential, sources say.

Jones Lang LaSalle selling agents Simon Rooney declined to comment when contacted by BusinessDay. He was marketing the property with Stephen Bolton.

ISPT put the shopping centre on the market in October, as part of a strategy to divest smaller non-core assets, or properties that no longer “fit the strategic fit of the portfolio”.

In Melbourne this year, ISPT also sold the 114 William Street office building in the CBD for about $95 million and the Greenwood Office Park in Burwood for $45 million.

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Marc Pallisco

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

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