JLL sells 100% interest in Brandon Park Shopping Centre for $135.0 million
A 100% interest in Brandon Park Shopping Centre sold to Newmark Capital, on behalf of Vicinity Centres.
AUSTRALIA, 18 April 2018 – JLL has exclusively negotiated the sale of a 100% interest in Melbourne's Brandon Park Shopping Centre for $135.0 million to Newmark Capital on a fully leased yield of 7.11%.
JLL's Head of Retail Investments – Australasia, Simon Rooney exclusively handled the transaction and said, "Victorian retail assets are tightly held and are generally highly sought after given their relative scarcity, especially in Metro locations. Brandon Park is one of only four sub-regional centre transactions within the Melbourne metro area since 2015.
"Unlisted funds continue to be drawn to the sub-regional sector given the attractive yields available relative to premium core assets.
"Victoria is experiencing the strongest rate of population growth on record, and investors are attracted to the positive growth drivers underpinning the Melbourne retail market.
"Transactions of sub-regional centres dropped to $1.0 billion in 2017, less than half the $2.4 billion per annum which sold between 2013 and 2016 - given the volume and scale of portfolio sales in prior years."
The sale of Brandon Park is the first sub-regional sale in metro-Melbourne since Casey Central in December 2016 for approximately $221.0 million and follows the recent sale of Toormina Gardens by Vicinity Centres (50%) and Challenger (50%) to Fort Street Real Estate Capital Fund III for $83.3m.
Vicinity Retail Partnership (VRP) also recently sold a 50% interest in Grand Plaza Shopping Centre to Invesco for $215.0m, with Vicinity Centres retaining a 50% interest, including management and development rights.
About Brandon Park Shopping Centre:
Brandon Park shopping centre is in an exceptional Melbourne metropolitan location, positioned 24km south east of the Melbourne CBD, and captures an extensive main trade area population in excess of 83,000 residents. The centre benefits from its close proximity to the Monash National Employment and Innovation Cluster, with close to 6,000 workers within one kilometre of the centre. Brandon Park Shopping Centre is on a landmark site of 58,100sqm with excellent exposure to a high level of passing traffic, convenient parking for 1,341 vehicles, and is strategically located at the busy intersection of Ferntree Gully and Springvale Roads - both key arterial roads. The centre has a total GLA of approximately 23,000sqm, is anchored by a strong performing Kmart DDS, as well as Coles and Aldi supermarkets, together with 6 mini-majors and 85 specialties & kiosks. Brandon Park provides potential repositioning, remixing and development opportunities to extract additional and ongoing value.
JLL (NYSE: JLL) is a leading professional services firm that specialises in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2017, JLL had revenue of $7.9 billion; managed 4.6 billion square feet, or 423 million square meters; and completed investment sales, acquisitions and finance transactions of approximately $170 billion. At the end of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of 82,000. As of December 31, 2017, LaSalle had $58.1 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com
JLL has over 50 years of experience in Asia Pacific, with over 37,000 employees operating in 96 offices in 16 countries across the region. We were the first global commercial property firm to establish an Australian presence in 1958 and currently employ over 3000 employees throughout our 18 offices across the country. The firm won 23 awards at the International Property Awards Asia Pacific in 2017 and was named number one real estate investment advisory firm in Asia Pacific for the seventh consecutive year by Real Capital Analytics. www.ap.jll.com