News release

RG Property sells Woolworths anchored The Village Dandenong Shopping Centre

June 30, 2020

MELBOURNE, 30 June 2020 – Woolworths anchored The Village Dandenong Shopping Centre in Melbourne’s south-east has sold for $29,100,000 to a Chinese private investor, reflecting an initial yield of 5.19%.

The off-market transaction was brokered by JLL’s Stuart Taylor and MingXuan Li on behalf of Perth based RG Property Group.

The Village Dandenong is a convenience based neighbourhood shopping centre, anchored by a full line Woolworths Supermarket and BWS Liquor and supported by 15 specialty retail tenancies.
Located approximately 35km south east of Melbourne CBD, Dandenong forms part of Melbourne’s thriving south eastern growth corridor and is one of Victoria’s largest economic hubs and fastest growing regions.

The transaction represents the 5th Victorian neighbourhood shopping centre sale to be completed in 2020 (3 of which have been sold by JLL) totaling $118.93m and an average weighted initial yield of 5.47%.

Mr Taylor said “The strong pricing achieved in this off-market transaction confirms the robust demand for non-discretionary retail assets.”

“The neighbourhood shopping centre market has demonstrated liquidity in the first half of 2020, with pricing remaining firm. Transactions have been driven by the defensive nature of the income streams and the continued ability to access cheap debt.”

Rhett Williams, CEO of RG Property said: “The sale price reflects an excellent outcome for our investors.  The completion of the transaction builds upon our track record of identifying value opportunities and executing on those strategies.”

Taylor added “These assets are being viewed as an investment ‘safe-haven’ in the current climate given they derive the majority of their income from essential service businesses such as Woolworths and Coles supermarkets.

“Supermarkets outperformed during the peak of the pandemic in March, with monthly retail trade growth of over 23.0%. Despite the ABS preliminary retail trade figures for April falling by 17.9%, food retailing figures remained higher than in April 2019.”

”Even with the proven strong demand for these assets, vendors are still favouring the off-market method of divestment in the current climate.”

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 94,000 as of March 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit