Zagame family list Yarra Junction Shopping Centre with $20 million-plus price hopes

The Zagame family – which we reported last month is said to be close to selling a portfolio of pubs to Moelis for about $270 million – is continuing to reweight its property portfolio, this time listing a retail asset in Melbourne’s outer north-east.

Yarra Junction Shopping Centre (pictured top and left) is expected to trade for more than $20 million.

The neighbourhood centre on the Warburton Highway, Yarra Junction, about 55 kilometres from the CBD, includes 3501 square metres of area leased to 11 specialty stores and anchored by a Woolworths supermarket.

An open-air car park fills much of the 8230 square metre Commercial 1 plot with redevelopment potential.

Based on the annual rental return of $1.3 million, the registered vendor, Zagame Yarra Junction Pty Ltd, is seeking to offload Yarra Junction on a passing yield of 6.5 per cent or less.

“The centre has had a strong trading history for over 25 years and has continued to benefit from a consistent growth in population in addition to tourism within the Yarra Valley Region,” CBRE state director Justin Dowers said.

“Due to increasing demand for retail services in the Yarra Valley region including Yarra Junction Shopping Centre, there is a clear opportunity to add value to this centre,” he added. “There is a clear undersupply of quality retail services in the location and this centre is very well placed to benefit from any capital investment”.

“Baby boomers and younger families are taking advantage of the relatively affordable residential property market in the Yarra Junction area in addition to the improved lifestyle conditions, which is driving growth in property prices and of course the local population”.

Mr Dowers is marketing the site with colleague Mark Wizel.

Zagame’s Caulfield was one of five Victorian pubs listed for sale earlier this year.

The Zagame family’s Zagame Corporation is understood to be in the process of selling a portfolio of five Victoria hotels (one of which is pictured, right) to US-based Moelis.

Coincidentally in 2016, Moelis Australia Asset Management sold the Healesville Walk shopping centre, not far from Yarra Junction, for $29.5 million – reflecting a rise on the $21.1 million it outlaid for the neighbourhood asset in 2013.

Other Melbourne shopping centres to find buyers recently include, in April, the Mornington Village Shopping Centre which traded for nearly $40 million and The Village Bacchus Marsh which traded for $61.65 million.

In June, Woolworths paid Singapore’s Chen family $41 million for the Mordialloc Plaza in the south-east and the Rosefsky sold the Bellarine Village Shopping Centre near in Geelong’s Newcomb for $36.5 million.

In early September, we reported that the $200 million Burwood One shopping centre – the site of Australia’s first K-Mart – was under offer.

A month ago, Industry Superannuation Property Trust offered the Campbellfield Plaza in the city’s north – which is expected to sell for about $80 million,

Supermarket giant Coles this week listed Aurora Village in Epping with price hopes of more than $40 million.

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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