Global asset manager IFM Investors has acquired a shopping centre portfolio to be developed by Australian-owned Oreana for approximately $300 million, a move to meet a surge in demand for convenience-based shopping.
The deal includes four sites in Melbourne’s growth suburbs: Botanical Village in Mickleham, Deanside Central in Deanside, Riverwalk Town Centre in Werribee and Eynesbury Village near Melton. Oreana, an integrated developer-builder, has five centres currently in construction across the city.
The move is part of IFM’s strategy to grow its presence in the retail sector, with ownership of over 50 convenience retail shopping centres across Australia.
“The future of retail growth sits with local and neighbourhood centres in high-growth areas. The ones that succeed will prioritise walkability, convenience, community connection and complementary non-retail uses that bring people together, said Kate Mathewson, IFM Investors’ executive director of funds management.
“This is an asset class that is resilient, essential and we believe, positioned to help us deliver for our clients and the millions of working people they represent. With retail spending projected to reach $619.8 million by 2041 in Melbourne’s expanding northern suburbs, local shopping offers a strong proposition to institutional investors.”
Within the portfolio, Botanical Village is set to open later this month. The centre spans 7400sqm of gross lettable area (GLA), anchored by a Coles and 25 specialty stores.
The three other assets remain under construction to be delivered over the next 18 months.
Deanside Central will be the first local shopping centre in Deanside, boasting 8200sqm GLA. Riverwalk has a GLA of 6400, while the 6700sqm GLA Eynesbury Village was acquired from Resimax Group last July.
Oreana MD Tony Sass said each site represented the company’s successful model of developing and building convenience retail co-located with childcare in new communities, providing one-stop-shop benefits.
“Oreana’s retail model is about more than just delivering a place to shop – it’s about creating a central hub in new communities where daily life is easier and more connected.
“Developments like these purchased by IFM play a vital role in building and uniting greenfield communities, offering residents a shared space to meet, connect and truly feel at home in their growing neighbourhood,” Sass added.
The transaction was introduced and managed by Fawkner Property Group. Justin Dowers from Stonebridge Property Group represented Oreana.
This is the first transaction as part of a strategic partnership between IFM, Fawkner Property and Oreana.
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