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News release


Retail Yields Continue to Tighten - Dan Murphy’s Pakenham sold on a 3.68% yield

8 Portobello Road, Pakenham sold for $8.76m

​​The sale of Dan Murphy’s Pakenham at a record low yield demonst​rates the strength of the market for retail investments. 8 Portobello Road, Pakenham transacted for $8,760,000 representing a tight initial yield of 3.68%.

The property was sold by JLL’s Director of Retail Investments Stuart Taylor and Retail Director Stephen Bolton in conjunction with Colliers International’s Senior Executive Tom Noonan.

The public auction campaign was highly successful with over 250 enquiries and seven bidders with the successful purchaser being an offshore private investor.

The property is prominently located on Princes Highway in Pakenham. Pakenham is a predominantly residential suburb approximately 55 kilometres from the Melbourne Central Business District in Melbourne’s rapidly developing south-east growth corridor.

The property featured a 15 year lease to Woolworths Ltd commencing June 2011 and comprised a modern free-standing building with a NLA of 1,438sqm serviced by approximately 83 at-grade carparks and additional vacant land.
Mr Taylor said “The strong response for this asset demonstrates the strength of the market for retail investments.  Retail investment yields have compressed significantly over the past 18 months driven by a range of capital market factors, but particularly strong competition.”​

Recent Dan Murphy's Investments Transactions:

PropertySale DatePriceInitial Yield
Dan Murphy's Bendigo VICMarch 2014$5,500,0005.80%

Dan Murphy's Broadmeadows VIC


August 2015






Dan Murphy's Queanbeyan NSWAugust 2015$11,300,0004.74%
Dan Murphy's Gladesville NSWAugust 2015$11,510,0004.58%
Dan Murphy's Pakenham VIC   September 2015$8,760,0003.68%


Retail turnover growth (seasonally-adjusted) in Victoria remained strong in early 2015, recording growth of 5.7% (year-on-year) as at February 2015. Change in retail turnover has closely tracked the growth in house prices since 2012 as positive house price rises translate into consumer confidence.

According to Mr Taylor, "The compression in yields is largely attributed to unseen levels of demand for free-standing retail assets with blue-chip lease covenants". The biggest driver of transactions is the weight of funds available.

Mr Noonan added, "The buyer pool for these assets has significantly increased to include off-shore investors, self-managed-super-funds, high-net-worth privates and also syndicate groups."

The Victorian market in particular is experiencing significant demand due to strong economic fundamentals and also limited assets for sale. The Victorian population is increasing at one of the fastest rates since 1982 and is forecast by Deloitte Access Economics to rise by 1.8% per annum between 2014 and 2020 well above the long term trend.