Woolworths sells Greenvale Lakes shopping centre

Woolworths Greenvale Lakes is about 25 kilometres north of Melbourne.

Woolworths has sold a new Roxburgh Park shopping centre for $27.7 million.

The price for Woolworths Greenvale Lakes at 200-230 James Mirams Drive, on the north west corner of Lombard Street, reflects a 3.95 per cent net passing yield.

Craigieburn Junction sold last week for $135 million.

On 1.42 hectares abutting a McDonald’s and convenience retail development site, the asset contains 185 car parks.

The vendor occupies the bulk of the 3403 square metre space on a 10 year lease; there are also two specialty stores rented to Terry White Chemist and Zet & Zaatar Bakery.

The deal comes a week since QIC paid $135m for the two year old Craigieburn Junction homemaker centre, about five kilometres north of Roxburgh Park.

Woolworths Greenvale Lakes

Stonebridge Property Group’s Justin Dowers, Kevin Tong and Philip Gartland said Woolworths Greenvale Lakes attracted 11 formal offers before selling to a local investor.

“The transaction demonstrates the continued positive sentiment around retail investments which are anchored by strong covenants, especially supermarkets,” Mr Dowers said (story continues below).

“The yield for these supermarket anchored investments continues to compress, with the recorded yield [for Roxburgh Park] being one of the sharpest seen in a metropolitan Melbourne shopping centre in the past three years,” according to the executive.

“Investors have transparency over trading performance and the planning framework in Victoria minimises replication…which is dissimilar to industrial assets,” he added of the retail sector.

Mr Tong said Woolworths Greenvale Lakes is the only metropolitan shopping centre offered so far in 2021.

Six regional assets of this type have sold, including in July, Torquay Village for $40m (reflecting a 5pc return) and Coles Morwell for $27.85m (5.12pc).

In the first half this year, Swan Hill Square collected $20.075 (a 5pc yield), Armstrong Creek Shopping Centre fetched $55.6m (6pc) and Bellarine Village traded for $38m (4.82pc).

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Marc Pallisco

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