Chinese syndicate pays $39.4 million for Mornington Village

Chinese syndicate pays $39.4 million for Mornington Village
Chinese syndicate pays $39.4 million for Mornington Village

A Chinese syndicate has paid $39.4 million for Mornington Village as the yield for shopping centres in Victoria approaches 5%.

The syndicate of Chinese investors purchased it on a 5.26% yield.

According to CBRE agent Mark Wizel, the centre was making $2.071 million per annum.

The centre contains holds several large contracts including Woolworths and Aldi.

The two level, 7963 square metre (GLA), neighborhood centre, is the fifth neighbourhood centre to be sold the past two months through CBRE’s Retail Investments team, making a total of just under $180 million at on average 5.09% yield.

Mornington Village last sold in January 2014 for $25.8 million on a yield of 7.47%.

Wizel said vendors were confident of getting a good price for their asset while purchasers were buoyed by strong population growth to various parts of Victoria,

He noted the retail assets in high demand were those that had underlying land value with development upside.

He said the national average trend for neighbourhood centres remained above 6% in the year to March, according to CBRE’s Australia Retail Q1 2018 report.

"Eighteen months ago yields for this retail asset class were approaching 6 to 6.5% and they have now firmly settled on an average of marginally above 5% and that is a reflection of the peculiar characteristics of the Victorian market,’’ Wizel said.

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Chinese syndicate pays .4 million for Mornington Village

Dowers said the residential population growth factor along with tourism had driven a string of retail investment sales on the Mornington Peninsula in recent years attracting a broad range of purchasers including institutions, syndicates and private investors.

A strip of retail properties sold recently for just over $6 million, exceeding its reserve price of $4.9 million, as seven buyers contested the 2229sq m 671-677 Point Nepean Road, McCrae offering.

The three leases to retailers Kobi Jacks, Alatonero and Merchant Maker café were recently renewed for five years.

A local investor bought the property across two titles at a yield of 3.6%.

Recent sales include Hastings Central Shopping Centre purchased by Henkell Brothers for $32.1 million.

Bentons Square half-share purchased by Vicinity Centres for $38.25 million.

Bunnings Warehouse Hastings purchased by a local syndicate for $15.16 million

Somerville Mall purchased by a private investor for $42.05 million.

Chinese Investment Mornington Peninsula

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