Local investor buys Lakeside Shopping Centre for $30m

LakesideA New South Wales-based investor has bought the Lakeside Square Shopping Centre in Pakenham for $30.38 million, bringing the total value of neighbourhood centre transactions in Victoria to over $300 million since the start of 2016.

The five-year-old shopping centre, which is anchored by a 20-year lease to a full line Woolworths Supermarket and BWS, and an additional 14 specialty tenants and eight-doctor medical centre, was sold on a yield of 5.77 per cent

The 6,271sqm centre is located on a 25,080sqm land parcel adjoining the Cardinia Road Train Station and adjacent to the new Cardinia council offices – forming part of the Lendlease-developed Lakeside Estate.

CBRE’s Victorian Retail Investments team Mark Wizel, Justin Dowers and Kevin Tong, negotiated the sale.

Wizel said non-discretionary shopping centres remain high on a broad range of investor wish lists as demonstrated by the sector’s strong activity this year.

“As has been seen in recent years, Victorian assets continue to attract the sharpest yields,” he said.  

“Pricing has firmed for retail assets Australia-wide, particularly in Victoria where there continues to be strong interest from offshore investors, which are starting to shift their focus from development opportunities,” Wizel added.

According to Dowers, Melbourne’s southeast had seen an upturn in activity over the past six months, with this sale marking the third neighbourhood shopping centre transaction during the period.   

“Buyers are recognising the forecasted growth in housing and population as a major drawcard for investing in the region,” Dowers said.

“According to recent data from the Australian Bureau of Statistics, Cardinia is the fourth fastest growing shire in the state and Casey is home to the third fastest growing suburb in Australia, Cranbourne East.”

Recent transactions in Melbourne’s southeast include the Springhill Shopping Centre sold for $43,000,000; Arena Shopping Centre sold for $48,100,000; The Avenue Village Shopping Centre  sold for $19,700,000; Casey Central Shopping Centre sold for $220,000,000; and Selandra Rise Shopping Centre sold for $20,126,300, bringing the total to $381,306,300.

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