- The off-market sale was managed by CBRE's Simon Rooney
- Pelligra last year acquired the former Ramada Encore Hotel in Dandenong
- The centre is currently home to more than 160 retailers
The Dandenong Plaza, in Melbourne’s growing south-east, has been acquired by major development group Pelligra for $145 million.
Simon Rooney, CBRE’s Head of Capital Markets – Pacific, managed the off-market sale of the centre, which currently has a developed masterplan to expand and activate the site.
The acquisition adds to Pelligra’s growing Dandenong landholdings, following the purchase of the former Ramada Encore Hotel – one of the largest suburban accommodation assets – mid last year.
Dandenong Plaza has a gross leasable area of 53,768 sqm, and occupies a landmark 7.7-hectare site in the Dandenong CBD. The areas has been targeted by the state government’s Revitalising Central Dandenong urban renewal initiative.
This project, with a timeframe of 15 to 20 years, aims to restore central Dandenong as the capital of Melbourne’s southeast. It is expected to attract over $1.2 billion in private sector investment.
The five-stage plan for revitalising Dandenong Plaza will ultimately result in 209,000 sqm of gross floor area (GFA) for residential, retail, commercial and hotel uses. There is the potential to deliver a further 125,000 GFA across future stages.
Dandenong Plaza has strong road and rail connection, and is home to over 160 retailers. There is parking space for 3,157 cars.
The main trade area population for the centre is 254,000, with this forecast to grow by 0.9% per annum to 292,000 by 2036. Spending in the area is expected to increase from $3 billion to $4.8 billion during this period.