Stockland reaps $63m in Tooronga Village sale
Stockland is looking to pick up the pace of its asset sales program and has sold Tooronga Village Shopping Centre, in the Melbourne suburb of Glen Iris, to funds group Newmark Capital for close to $63 million.
More centres are changing hands after a quiet period when market values recalibrated.
In a separate play, property investor Isaac Solomon has snapped up Melbourne’s Coburg North Village from businessman Raymond Joe for $47 million. The sale of the Coles-anchored centre was brokered by CBRE and showed a crisp yield of about 4.7%.
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Newmark’s purchase has built up a near $1 billion funds empire, with many of its assets bought from listed property majors.
“We continue to identify and acquire institutional assets in markets we know and understand that provide unique investment opportunities for our investors to participate in,” says the firm’s co-founder, Simon T. Morris.
Newmark’s purchase reflected its strong belief in the catchment and its non-discretionary spending profile. The move was a “core” property play rather than a development deal.
Tooronga Village is anchored by a full-line Coles supermarket and First Choice Liquor and has 30 mainly non-discretionary specialty shops. It spins off a net income of more than $4.2 million annually and serves the blue-chip areas of Toorak, Malvern, Hawthorn, Kooyong and Glen Iris.
The 8973sqm complex has parking for 488 cars and was marketed by CBRE’s Mark Wizel, Justin Dowers and Trent Weir.
This article originally appeared on www.theaustralian.com.au/property.