Retail centre may sell at $200m

August 1, 2018 by  

A sub-regional shopping hub in the vicinity of Croydon may fetch a nine-figure sum.

The Burwood Shopping Centre (BSC) could be purchased for around $200m. The BSC is situated where Blackburn Road meets Burwood Highway, and is accessible from suburbs such as Croydon.

The current vacancy rate of BSC is zero. As a result, the centre is bringing in almost $10m per year net. Anchor stores on the site include Aldi, Kmart and Coles, with over 50 other shops helping to make the BSC into a thriving spot.

Mark Wizel is dealing with the upcoming transaction for CBRE, and told the Sydney Morning Herald:

“Given its size, location, tenancy profile and growth potential – both in terms of its current guise and future site development potential – this is the sort of asset which will attract a very strong field of buyers.”

This is the kind of asset that may get a positive responsive from the market. The Leopold Gateway Centre (LGC) in Geelong was sold for almost $120m.

Parts of the retail sector have found it hard to cope with variable consumer demand, while competition from online retailers has also proved awkward for some businesses. However, subregional assets have not struggled as investor demand has remained firm. Neighbourhood centre sales have not slumped in recent months either.

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