Shepparton Marketplace has been sold to the Singapore-based Sim Lian-Metro Capital for $88.1 million, after attracting strong interest from private and institutional investors.
The off-market sale of the shopping centre on Benalla Rd, Shepparton, was negotiated by CBRE’s Simon Rooney and James Douglas on behalf of Dexus Wholesale Property Fund.
Mr Rooney said investors were attracted by the centre’s strong combined sales performance and income security of the major tenants Woolworths and Big W, which are on leases until 2030 with further options.
“The centre is situated in an expansive, densely populated trade area with a substantial retail expenditure pool, which is forecast to grow from $1.9 billion to $3 billion by 2036,” he said.
“The centre is also set to benefit from the Shepparton Southeast Precinct Structure Plan, which proposes an additional 2500 dwellings for the catchment area, accommodating circa 6000 residents.”
The 16,535sqm shopping centre has speciality productivity of $14,641/sqm — 66 per cent above the recognised composition and performance benchmark.
“The level of buyer interest in the Shepparton Marketplace process demonstrates the continued depth of demand for quality sub-regional shopping centre assets, particularly centres offering value-add opportunities,” Mr Rooney said.
“There is immediate potential to undertake a targeted remix of the centre’s speciality tenants and to enhance the casual dining offer.
“While the large 122,900sqm site includes 61,700sqm of vacant land, providing significant scope for future development opportunities.”