Lendlease’s Australian Prime Property Fund (APPF) Retail and co-owner Lendlease Group have exchanged contracts on the sale of Craigieburn Central to IP Generation for a gross price of $300 million (excluding transaction costs and settlement adjustments).
IP Generation is one of the most active investors in the Australian retail market, having acquired circa $1 billion in shopping centres since 2021 including its most recent purchase of ASCF’s 50% stake in Western Australia’s Rockingham Centre for $180 million.
Developed by Lendlease and opened in 2013, Craigieburn Central is located in one of Melbourne’s fastest growing regions and comprises approximately 157 specialty stores, together with a range of major retailers and entertainment offers, as well as bulky goods and commercial tenants.
Craigieburn Central has long been a sought-after asset due to its location in a growing catchment area, mix of quality tenants and value-add potential.
APPF Retail held a 75% interest in the Centre, with Lendlease Group holding a 25% interest.
Simon Rooney, CBRE’s Head of Retail Capital Markets, Pacific, negotiated the sale on behalf of the vendors, representing the largest retail transaction in Victoria since 2018 and nationally since December 2021.
The deal represents the most competitive outcome for a regional shopping centre since the sale of the Grand Plaza Shopping Centre in Brisbane, which CBRE sold to EG Funds on behalf of Invesco in early 2022.
Mr Rooney noted, “The sale was a highly competitive pricing outcome for APPF Retail and Lendlease, simply reflective of the attractive inherent, long term and deep value fundamentals Craigieburn Central offers, valued accordingly by proactive private capital that dominates the retail investment landscape across Australia at present.”
“The retail sector is set to benefit from migration, resilient spend in the face of already high interest rates and very low new supply in the market after a period of under-investment in the sector.”