Vicinity Centres has sold a shopping centre in Melbourne’s north-west for $113 million following an off-market campaign.
The Keilor Central Shopping Centre at 80 Taylors Road, Keilor Downs (pictured top and left), is being acquired by Walsh & Company Investments Limited, for the entity Fort Street Real Estate Capital IV (Fund).
On a 9.1 hectare block also with access to Sunshine Road, the complex includes 19,700 square metre of area and a large car park.
Fort Street Real Estate Capital acquired the centre on an initial yield of 6.3 per cent.
“The centre is located in a well established suburb of Melbourne, 17 kilometres from the CBD, and services a wide catchment area,” Fort Street Real Estate Capital investment director David Rogers said in this statement.
“Attracting strong visitor numbers, the shopping centre is anchored by Coles, Aldi and Kmart and comprises primarily convenience-based retailers, including two mini-majors, 59 speciality tenants and two pad sites,” Mr Rogers said.
“The centre is 99% occupied, with national retailers representing 72% of total income, including Commonwealth Bank, Australia Post, The Reject Shop, Vodafone, Specsavers, Hungry Jacks and KFC.
“We are very pleased with this acquisition of Keilor Central. It is an exceptional asset and a great quality investment for the Fund. The asset is performing strongly given its convenience-based retail offering and strategic location in a part of Melbourne with limited competition. Furthermore, there are a number of ways that we believe we can enhance the value of the asset,” Mr Rogers said.
“We have a strong track record of successfully re-positioning assets and there is potential to improve the tenancy mix, as well as longer-term opportunities to add value to the asset.”
The centre’s convenience-based retail mix, national retailers, strong services offer and strategic location contribute to its consistently strong sales performance, Mr Rogers added.
Colliers International’s Lachlan MacGillivray negotiated the off-market deal.
In March, 2016, Vicinity Centres sold a 1.9 hectare parcel of land abutting the Keilor Central Shopping Centre to a land speculator for $6.5 million. That purchaser sold the site a year later for $11 million to a residential developer after obtaining a permit to replace it with 99 townhouses.
Earlier this week we reported that Charter Hall was paying $74 million for the Campbellfield Plaza shopping centre, on a 5.9 hectare block about 16 kilometres north of the Melbourne CBD.
Like Keilor Central Shopping Centre, Campbellfield Plaza attracted a purchaser keen to exploit the land development potential.