SLMC secures another Victorian shopping centre
A partnership between Sim Lian Group and the listed Metro Holdings Limited, both from Singapore, has snapped up Shepparton Marketplace for $88.1 million.
The deal reflects a capital gain for the vendor, Dexus, which paid $70.595m in 2014 for its Wholesale Property Fund.
That acquisition reflected a seven per cent capitalisation rate.
The disposal is 6.25pc.
With a greater population of nearly 70,000, Shepparton is Victoria’s fifth biggest city.
In June, we reported fund manager VIMG paid Nestle c$18m for a 78.2 hectare industrial site in the region’s Tongala.
Not long earlier, in the area, Charter Hall picked up SPC Ardmona’s food processing plant with a 30 year leaseback, outlaying $66m.
SLMC shops again in regional Victoria
On 12.29ha at 110-120 Benalla Road (or Midland Highway), two kilometres east of the city centre, Shepparton Marketplace is the town’s dominant mall.
With 16,535 square metres, it will also be the biggest Victorian retail asset for the incoming owner, known as Sim Lian-Metro Capital (SLMC).
The partnership’s other local centres – Lara Village in Geelong and Coltman Plaza at Lucas, Ballarat – contain 6441 sqm and 5512 sqm respectively.
In Melbourne’s west the landlords own the 6419 sqm Tarneit Gardens.
Nationally, SLMC controls 17 properties – four office and 13 retail, all up worth $1.2 billion – spread amongst the east coast states and Western Australia.
CBRE’s Simon Rooney and James Douglas brokered the off-market Shepparton Marketplace sale (story continues below).
Land galore
About six hectares of the Shepparton Marketplace site is vacant and ready for immediate development, Mr Rooney said.
The parcel also includes a Caltex service station and 900 car parks.
The mall is anchored to Woolworths and Big W, with 36 specialty stores, five kiosks and a 265-seat food court.
Vacancy is about 2.7pc.
The Weighted Average Lease Expiry by income is 4.1 years.
“Investors were attracted by the centre’s strong combined sales performance and exceptional income security…coupled with the outstanding specialty productivity of $14,461 per sqm, which was…above…benchmark,” Mr Rooney said.
“The centre is also set to benefit from the Shepparton South East Precinct Structure Plan (PSP) which proposes an additional 2500 dwellings for the catchment area, accommodating circa 6000 residents,” he added.
With this, the retail expenditure pool is expected to grow from $1.9b to $3b by 2036, according to the executive.
The acquisition comes 16 months since SLMC paid Mirvac $132.8m, reflecting a five per cent yield, for the Cherrybrook Village shopping centre, north west of Sydney.
Also last year, it purchased the Ropes Crossing Village, about 30 kms west of Cherrybrook, from Ganellen, outlaying $42m (a 5.5pc return).
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