Charter Hall REIT has completed the acquisition of Tooronga Village shopping centre in Glen Iris, Melbourne, for $79 million.
The neighbourhood shopping centre, which is just 10km from Melbourne’s CBD, has more than 7700sqm of space with 20 specialty stores, five kiosks, a Coles, and two mini-major store spaces.
In a deal negotiated by representatives of Stonebridge Property Group and Colliers, the “strong trading fundamentals” of Tooronga Village were highlighted.
“Tooronga Village is anchored by a highly productive Coles supermarket, with the centre sales productivity above $17,000 per square metre, ranking the centre as one of the highest performing neighbourhoods in inner metropolitan Melbourne,” said Tim McIntosh of Colliers.
“Assets of this calibre are tightly held and rarely traded, particularly within Melbourne’s inner eastern suburbs, making it a highly valuable investment proposition.”
Justin Dowers, of Stonebridge, said the sale reflected the continued demand for retail assets within wealthy metropolitan areas.
“High-quality neighbourhood shopping centres continue to attract significant investor interest, driven by strong population growth, resilient supermarket performance and limited incoming new supply,” Dowers added.
“The strong rental growth currently being experienced across the neighbourhood shopping centre sector is driving substantial capital reweighting into convenience retail, with this transaction alongside the recent sales of Burwood Brickworks and Coles and Aldi Kilmore representing more than $220 million of Melbourne neighbourhood centre transactions in the last two months.”
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