Vicinity sells Mildura Central

Mildura Central contains 20,200 sqm of area.

The last asset in the Vicinity Enhanced Retail Fund – Mildura Central – has sold.

The deal with Chris Lock’s IP Generation is worth $81.1 million – or $78.1m plus cash contributions by Vicinity.

It marks a loss for the vendor, which via Novion Property Group (which merged with Federation Centres to create Vicinity six years ago), paid $109.75m, on a 6.8 per cent yield, in late 2014.

The 7.35 hectare asset has 20,200 square metres of lettable area.

One of the anchors is Target which restructured last year and has not confirmed it will stay on.

The latest sale reflects a c9pc return.

At the south-east corner of Deakin Avenue and Fifteenth Street, the complex is c3.5 kilometres from central Mildura.

Elsewhere in regional Victoria, IP Generation holds Corio Central, near Geelong, which cost $101m on a 9.4pc yield in 2018 (Vicinity was again the vendor).

Also three years ago Mr Lock sold Footscray’s ex-Lonely Planet office, acquired as part of a separation with the Liberman family’s Impact Investment Group, for $33.1m.

Colliers’ Lachlan MacGillivray marketed Mildura Central (story continues below).

VERF ends

The site spreads 7.35ha, about 3.5km from central Mildura.

“The centre is anchored by a strong performing Woolworths and Target…with a highly destinational tenancy mix that services a trade area that extends up to 100km north, incorporating parts of Victoria, South Australia and New South Wales,” the agent added.

Seven months ago, Vicinity sold another VERF asset – Riverside Plaza, in Queanbeyan, near Canberra – for $60m.

The vendor acquired that centre via another incarnation, CFS Retail Property Trust; it cost $62.5m, also in 2014.

Elsewhere in NSW fund complexes in Lidcombe and Bathurst were divested.

In Victoria VERF also offloaded Gateway Leopard Plaza, near Geelong, and Keilor Central.

Last year, Vicinity announced a $2 billion redevelopment of its prominent Box Hill Central sites, in Melbourne’s east.

In 2018 the manager banked $631m from 11 investments – 10 sold to SCA Property Group.

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Marc Pallisco

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

Marc Pallisco