Archives: Victorian Retail Investments

The CBRE Victorian Retail Investments team is a dedicated group of individuals with a pure specialisation in supermarket and shopping centre activity. With a wealth of experience and knowledge around retail trends, shopping centre forecasts, rental rates, anticipated yield and offshore investment, our team has a wide variety of expertise to suit any needs related to shopping centres.

106 shopping centre have been transacted since 2010, ranging from $20,000,000 to $181,500,000 and totalling approximately $3.5bn in sales.


Niddrie SC listed amidst shift to land rich assets

A Melbourne investor has listed the Niddrie Central Shopping Centre as developers and investors, including a particularly strong Asian cohort, drive a market shift towards income producing assets with development upside in the wake of a troubled residential apartment market.

CBRE National Director Retail Investments, Mark Wizel, who is managing the sale with Justin Dowers, said the land rich, 5112 square metre, Niddrie neighborhood centre, which is being offered for the first time, is anchored by a 3543 square metre Woolworths supermarket on close to 10,000 square metres of under-utilized Commercial 1 zoned land with a net annual income of $1.46 million.


Private syndicate trades in $6m Jeep dealership

A Melbourne syndicate of private investors has divested its Jeep car dealership site in Caroline Springs, selling to a private investor from Ballarat for $6.05 million.

Boasting an annual net income of $501,000 per annum, the 2,091sqm strata site is currently leased to a local Jeep franchisee with five years remaining on the lease term.


Niddrie Central and Coburg North Village to test retail property appetite

“[Niddrie Central] is just what investor/developers are looking for – a strongly performing supermarket-anchored centre in Melbourne’s middle suburbs that is going to provide a solid income stream on top of significant future development potential in an area with increasing demand for medium-density residential accommodation,” Mr Dowers said. “Yields for retail centres have tightened considerably…


The Retail Investment Market – A Year in Review

From the desk of Justin Dowers

State of the market

It was only 10 months ago that some were forecasting the demise of traditional shopping centres on the back of the arrival of some significant e-commerce players into the Australian market. That has not occurred. Indeed, it might be argued that the e-commerce threat has been a blessing in disguise in forcing an overdue revitalisation of the shopping centre offering – taking shape in the form of a successful tenancy remix strategy. Retail has shown a pleasing resilience and an ability to adapt to a changing environment that has at least partially underpinned a very good year for retail investments.


Sub-regional centres drive hot retail sales

Shopping centre sales in Victoria topped $1.75 billion in 2018, up a massive 84 per cent over 2017 in the midst of one of the most turbulent periods for retailing in years with disappointing retail sales figures and online competition leading to the demise of some brands and the relocation and restructuring of others.

The impending sales of the Drysdale Village and Yarra Junction centres, among others, will add to the total.

According to data compiled by CBRE Director Institutional Retail Investments, Trent Weir, shopping centre sales in Victoria have topped $1.75 billion so far in 2018, up a massive 84 per cent over 2017.


Schwartz family sets new Melbourne benchmark with Liberty Tower retail sale

Melbourne’s Schwartz family realised $21,500,000 from the sale of a portfolio of ground floor shops beneath Melbourne’s landmark Liberty Tower apartment tower, representing the largest strata portfolio transaction in the city’s history.

The eight shops were offered together after 20 years of ownership as part of CBRE’s latest Premium Property Portfolio Auction (PPPA).

CBRE’s Josh Rutman, Nathan Mufale, Kevin Tong, Dylan Kilner and Max Ruttner marketed the properties, with the sale to a Sydney-based investor reflecting a new pricing benchmark for strata portfolio investments in Melbourne’s CBD.


Hobart CBD Officeworks Transacts to International Investor from Mainland China

A domestic private family have just cashed in on their Officeworks Investment in the Hobart CBD, selling at auction to an international investor with heritage from mainland China for $11,725,000, with the CBRE Victorian Freestanding Investments transacting the property through their premium property portfolio auction.

CBRE Freestanding Retail Investments Joseph Du Rieu, Kevin Tong and Mark Wizel transacted the asset exclusively for the vendors, which attracted interest from both the domestic and international investors, witnessing multiple bids from across the country on the night.

Shanghai buyer’s $44.5m for Coles Aurora

A Chinese investor introduced through CBRE’s Shanghai office has pipped several local and international rivals in paying $44.5 million on a circa 5.6 per cent yield for Coles Group’s Aurora Village neighbourhood centre at Epping in Melbourne’s north. CBRE National Director Investments, Mark Wizel, who brokered the deal with Justin Dowers, Kevin Tong and Lewis…


CBRE retail team nabs highly regarded valuer

CBRE’s Victorian Retail Investments team has secured the services of highly regarded valuer, Annalee Neil.

Ms Neil, a Deakin University property graduate, will take on the role of Analyst, Victorian Retail Investments, following nearly three years as a valuer at M3 Property where she focused on valuing retail assets for many of Australia’s major shopping centre owners.

National Director Retail Investments, Mark Wizel and State Director Retail Investments, Justin Dowers, said they were delighted to announce the appointment.


Local Asian buyers splash $200m in 10 weeks

The strong Asian interest in Melbourne’s sub $100 million commercial property market remains despite restrictions on off-shore Chinese investors with CBRE selling 19 properties worth just over $200 million to Asia-linked investors since the first week of July.

The purchases, which included an unknown off-shore finance component, were part of an extraordinary ten week period which saw 41 properties sell for more than $570 million including 277 William Street which fetched $93.88 million, 105 York Street South Melbourne, $49 million, and Leader Newspapers’ former Blackburn HQ, $30.2 million.


Opportunities at every stage of the cycle: Gurner

While the residential market faced numerous headwinds, not the least from the Hayne Royal Commission’s impact on the availability of housing finance, there remained real opportunities in the market, according to Melbourne developer, Tim Gurner.

Speaking at the sixth annual CBRE & Wingate client luncheon at Crown, Mr Gurner told the 450 attendees that there was no doubt the Royal Commission had inadvertently hurt the industry but there were always pockets of the market that would outperform others.

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