Chinese investor snaps up Melbourne shopping centre for $48 million
Victorian shopping centres are emerging as the asset of choice for Chinese investors, with the sale of Arena Shopping Centre in Melbourne for $48 million being the latest transaction.
Over the past 15 months, Chinese investors have spent more than $380 million buying shopping centres across Victoria – highlighting the ongoing strength in investment appetite for well-located assets backed by strong tenancy profiles, according to commercial real estate firm CBRE.
Arena Shopping Centre is located in the south-east suburb of Officer.
It is anchored by a 4,100 sqm Woolworths Supermarket and BWS on a 20-year lease.
It is positioned on a 2.97 ha site, and has 25 specialty retailers as well as a freestanding McDonald’s and Caltex Service Station.
The centre generates an annual income of $2.65 million per annum and the initial yield works out at 5.38%.
The sale was brokered by CBRE with the limited supply of neighbourhood shopping centres being offered to the market underpinning strong sale results.