Fort collects Keilor shopping centre in pre-Christmas swoop
Fort Street Real Estate has swooped on the Keilor Central Shopping Centre in Melbourne buying the major subregional centre for $113 million.
The group’s Fort Street Real Estate Capital Fund IV has bought the complex from an unlisted fund run by Vicinity Centres.
The convenience-based subregional centre in the suburb of Keilor Downs traded on an initial yield of 6.3% in a deal brokered by Lachlan MacGillivray of Colliers International.
Commercial Insights: Subscribe to receive the latest news and updates
Keilor Central spans a lettable area of about 19,700sqm, with a large on-grade car park and a site area of 9.1ha.
The centre services a wide catchment area and is anchored by Coles, Aldi and Kmart and comprises mainly convenience-based retailers, including two mini-majors, 59 specialty tenants and two padsites.
The centre is 99%-occupied, with national retailers representing 72% of the total income, including the Commonwealth Bank, Australia Post, The Reject Shop, Vodafone, Specsavers, Hungry Jacks and KFC.
Fort Street Real Estate Capital investment director David Rogers says the property is performing strongly given its convenience-based retail offer 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. We have a strong track record of successfully repositioning assets and there is potential to improve the tenancy mix, as well as longer-term opportunities to add value to the asset,” he says.
This article originally appeared on www.theaustralian.com.au/property.
