Shopping centre appetite continues in Melbourne’s southeast

The Lakeside Square Shopping Centre in Pakenham, Melbourne.
The Lakeside Square Shopping Centre in Pakenham, Melbourne.

A shopping centre in Melbourne’s southeastern suburbs has sold for more than $30 million to a new entrant to the market.

A Sydney-based Malaysian investor bought the Lakeside Square Shopping Centre in Pakenham on a yield of 5.77%.

The buyer is a family with a background in wholesale fruit and vegetable sales who are making their first shopping centre purchase. The mall was built in 2012 by a group of tradespeople including an architect, builder and plumber, who offloaded the property for $30.38 million.

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The 6271sqm centre is anchored by a Woolworths supermarket and BWS, with 14 specialty tenants and a medical centre.

Agents on the deal were CBRE’s Victorian Retail Investments team including Mark Wizel, Justin Dowers and Kevin Tong.

Lakeside Square Shopping Centre

The shopping centre sold for more than $30 million.

“Non-discretionary shopping centres remain high on a broad range of investor wishlists as demonstrated by the sector’s strong activity this year,” Wizel says.

“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.”

Dowers says activity is picking up in Melbourne’s southeast, where the population is set to grow.

Arena Shopping Centre in Officer sold for $48.1 million in March and Springhill Shopping Centre in Cranbourne traded for $43 million last December.

The deal comes as retail landlords prepare for the looming entry of Amazon.

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