Melbourne asset manager buys Armidale Food Emporium
Melbourne asset manager MPG Funds has quietly bought the Armidale Food Emporium.
The Coles anchored complex at the corner of Marsh and Dumaresq streets cost $21.47 million.
Also with 11 specialty stores – the shopping centre’s weighted average lease expiry is just over nine years – it occupies 5583 square metres with 139 car parks.
The seller, Armidale Food Emporium Pty Ltd, paid $12m in 2011.
It was represented for the disposal by Leiba Commercial’s Marc Leiba.
Ninth asset for trust
The Armidale asset will be slotted into the MPG Retail Brands Property Trust, again bringing the number in that portfolio to nine.
The asset manager has not disclosed the income or yield.
“Given the high construction costs, it is hard to feasibly develop new retail property in the current environment,” managing director, Brett Gorman, said.
“This makes properties such as Coles Armidale, that can be purchased well below replacement value to be very compelling investments,” he added.
With the purchase – and a lease at another property in the trust, Rocks Central Shopping Centre in South West Rocks – MPG amended its distribution for the June quarter, to 1.25 cents per unit.
The forecast distribution yield for FY26 has been increased though, to six cents (equating to 1.5c per quarter).
Elsewhere in NSW, the Retail Brands Trust also holds Coles Moss Vale.
Subscribe to our newsletter at the bottom of this page.
