A number of retail centres in Melbourne, VIC have been placed on the market in the past week. Despite mixed sentiment in the Australian retail market, FY2018 was a record year for investment sales, highlighting the fact that both private and institutional investors see value in the sector. GPT Group (ASX: GPT) is looking to divest its Highpoint Homemaker Centre in Melbourne’s inner north west suburb of Maribyrnong with price expectations of $80M for the retail asset. The Maribyrnong centre is fully leased and returns a net income of about $5M p.a. The single levelled 21,272 sqm centre, home to 18 larger format retail operators, is located approximately 8km north-west of the Melbourne CBD.
Super fund investor ISPT is also looking to divest a sub-regional mall in Melbourne’s north, worth ~$80M, as it sets its sights on retail assets elsewhere. The Campbellfield Plaza shopping centre generates around $4.6M of net income annually. Anchored by Coles, Kmart and Officeworks, the 18,000 sqm centre is complemented by 19 mainly non-discretionary specialty stores. VIC continues to experience strong economic performance, coupled with the record low cash rate of 1.5% and improved consumer spending conditions, driving continued investment demand for core retail investment assets.