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News release


Liquid market conditions see Australian retail transactions reach $1.5 billion in two months alone

Retail transactions are on track for a record year in Australia, already edging towards the $6.4 million in sales in 2012, after two stand-out months in October and November

​​​​​AUSTRALIA, 4 DECEMBER 2013 – Transactions in the Australian retail investment market reached $1.5 billion during the months of October and November alone – making up a quarter of the total sales for the year to date at $6.1 billion.

Australian Head of Retail Investments, Simon Rooney said, “This significant two months of investment activity, reflects the momentum that has been building in the Australian retail investment market this year.  In October and November alone, Jones Lang LaSalle transacted close to $800 million of deals.

“The market is on track for another standout year in Australia, with sales already at $6.1 billion year-to-date and closing in on the Australian record of $6.4 billion for the full year in 2012.

“What is driving this level of activity is the liquid market conditions that have allowed vendors to execute their varying strategies of portfolio reweighting and unlocking of significant capital for redeployment into development and/or acquisitions.  

“This recent increase in activity suggests investors, both domestic and offshore, are becoming even more motivated to secure major retail assets while quality opportunities still exist.

“As we approach the final stretch of the 2013, there are a range of major transactions in the pipeline close to be being concluded, that could boost 2013 volumes into the history books as the strongest year on record.

“2014 is shaping up to be another exciting year, with this significant and on-going market liquidity providing a highly conducive environment for continuing high levels of retail transaction activity,” said Mr Rooney.

Key themes in the Australian retail investment market at present: 
  • A significant and increasing weight of capital seeking exposure to regional centres from a variety of sources, both Australian based and from across the globe.

  • With limited opportunities in the regional sector, capital is now cascading into the sub-regional market, where yields still remain attractive and there is strong potential for capital growth.

  • Non-discretionary based centres have also been particularly sought after, but opportunities to acquire assets with appropriate scale has been very limited.

  • Activity in the bulky goods sector has now peaked, as institutions have largely exited the sector to private and syndicate interests, who have specialist in-house management capabilities. Since the start of 2012, Jones Lang LaSalle have also sold 10 homemaker centres totalling over $600 million, marking the most active period in this sub-sectors history.

We highlight the major transactions to occur over the past few months:​
Retail Transactions_2H 2013.jpg