shepparton marketplace
Shepparton Marketplace. Image supplied.
  • The asset was sold off-market to Sim Lian - Metro Capital
  • The sale price reflects a capitalisation rate of 6.25%
  • The centre’s speciality productivity of $14,641 sqm is 66% above Urbis' benchmark

Dexus-owned Shepparton Marketplace in regional Victoria has been sold to a Singapore investor.

Sim Lian – Metro Capital acquired the asset for $88.1 million, its latest Australian retail acquisition.

The sale was negotiated off-market by Simon Rooney and James Douglas of CBRE on behalf of the Dexus Wholesale Property Fund.

The duo said the campaign attracted strong institutional and private investor interest. The sale price reflected a capitalisation rate of 6.25%.

“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.”

The 16,535 sqm centre is anchored by a strong performing Woolworths and Big W, with both of these stores in leases until 2030 with further options.

Shepparton Marketplace is the dominant sub-regional centre for Victoria’s fifth largest city, and benefits from its convenient Midland Highway location which allows it draw shoppers from a broad catchment area.

Mr Rooney added that investors were attracted the strong combined sales performance of the centre and the relative income security with major tenants such as Big W and Woolworths. The centre’s speciality productivity of $14,641 sqm is 66% above Urbis’ benchmark.

“The centre is situated in an expansive, densely populated trade area with a substantial retail expenditure pool, which is forecast to grow from $1.9bn to $3.0bn by 2036,” he said.

“The centre is also set to benefit from the Shepperton Southeast Precinct Structure Plan (PSP), which proposes an additional 2,500 dwellings for the catchment area, accommodating circa 6,000 residents.”

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