Joint investment venture snaps up Waverley Gardens Shopping Centre

Joint investment venture snaps up Waverley Gardens Shopping Centre
Joint investment venture snaps up Waverley Gardens Shopping Centre

The Waverley Gardens Shopping Centre in Melbourne has been sold for $178 million.

A new joint venture between Elanor Investors Group, global firm Heitman and domestic institutional and wholesale capital partners were behind the purchase.

The 39,554 square metre sub-regional shopping centre is on a 106,000 square metre site 25 kilometres south-east of Melbourne’s CBD.

Major tenants account for 56% of total gross lettable area and it is anchored by Woolworths, Coles and ALDI supermarkets, as well as two discount department stores.

The sale was negotiated  by JLL’s Head of Retail Investments for Australasia, Simon Rooney, on behalf of Blackstone.

 “Sub-regional assets continue to appeal to yield-driven investors given the compression in yields in other retail sub-sectors and across other real estate sectors,” said Mr Rooney.

“We continue to see demand for retail assets where investors can progressively add value and drive enhanced returns, either via intensive asset management and/or development.

“Waverley Gardens offers an attractive and secure income return and provides future mixed-use development potential, given the extensive land parcel of 106,000 square metres.

“Investors are attracted to the high population growth in Victoria which is currently running at 2.2% per annum, now the strongest nationally.

“The state provides sound investment fundamentals with the economy underpinned by broad-based growth driven by strong growth in household consumption, tourism, infrastructure spending and business investment.

“Opportunities to acquire sub-regional centres in 2017 were limited, with sub-regional transaction activity falling to $1.1 billion, less than half the $2.3 billion (per annum) which sold between 2013 and 2016 – reflecting the volume and scale of portfolio sales in prior years.

“We have seen $1.3 billion transact in the year to date.”

The Waverley Gardens Shopping Centre in Melbourne has been sold for $178 million.

A new joint venture between Elanor Investors Group, global firm Heitman and domestic institutional and wholesale capital partners were behind the purchase.

The 39,554 square metre sub-regional shopping centre is on a 106,000 square metre site 25 kilometres south-east of Melbourne’s CBD.

Major tenants account for 56% of total gross lettable area and it is anchored by Woolworths, Coles and ALDI supermarkets, as well as two discount department stores.

The sale was negotiated  by JLL’s Head of Retail Investments for Australasia, Simon Rooney, on behalf of Blackstone.

 “Sub-regional assets continue to appeal to yield-driven investors given the compression in yields in other retail sub-sectors and across other real estate sectors,” said Mr Rooney.

“We continue to see demand for retail assets where investors can progressively add value and drive enhanced returns, either via intensive asset management and/or development.

“Waverley Gardens offers an attractive and secure income return and provides future mixed-use development potential, given the extensive land parcel of 106,000 square metres.

“Investors are attracted to the high population growth in Victoria which is currently running at 2.2% per annum, now the strongest nationally.

“The state provides sound investment fundamentals with the economy underpinned by broad-based growth driven by strong growth in household consumption, tourism, infrastructure spending and business investment.

“Opportunities to acquire sub-regional centres in 2017 were limited, with sub-regional transaction activity falling to $1.1 billion, less than half the $2.3 billion (per annum) which sold between 2013 and 2016 – reflecting the volume and scale of portfolio sales in prior years.

“We have seen $1.3 billion transact in the year to date.”

 

 

Tags: 
Shopping Centre Waverley

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