Village Lakeside Shopping Centre in Melbourne’s Pakenham is set to test investor demand in the hotly contested neighbourhood shopping centre market. The asset represents a highly coveted offering, being anchored by Coles, freehold title and located within Metropolitan Melbourne.
JLL’s Stuart Taylor, Tom Noonan and MingXuan Li have been appointed to run the Public Expression of Interest campaign on behalf of a MPG Funds Management Ltd, who own the asset in their MPG Retail Brands Property Trust.
Village Lakeside Shopping Centre is located within the established suburb of Pakenham within the south-east growth corridor of metropolitan Melbourne. The centre provides a highly desirable offering, anchored by a strong performing Coles supermarket, and supported by 10 non-discretionary specialty stores.
The 3,654 sqm centre occupies a highly strategic 11,220 sqm parcel of land, zoned Comprehensive Development Zone, and provides over 180 at-grade car spaces on title.
The Centre is located within Pakenham’s prized Princes Highway retail precinct, immediately adjoining ALDI & Dan Murphy’s and adjacent to Bunnings, Officeworks and HomeCo Pakenham – providing enormous retail draw power.
Stuart Taylor, Senior Director of Retail Investments at JLL said “We are anticipating significant interest in the asset, with non-discretionary or convenience focused shopping centres continuing to attract the deepest and most competitive buyer pool within the retail property sector.”
Tom Noonan said “The asset provides a highly defensive income profile, underpinned by a strong performing Coles Supermarket, with a tenancy mix which is exclusively food/grocery, medical or packaged liquor.”
“Village Lakeside Shopping Centre provides investors with an attractive, inflation hedged income growth profile, with Coles Supermarket currently paying percentage rent, with balance of tenants providing annual reviews linked to CPI or a fixed percentage” Taylor added.
Servicing a well-established and expanding trade area of 40,000 residents, and boasting impressive robust annual compounding growth rate of 1.3%, reflecting an increase of 11,200 persons between 2022 and 2041 to reach 50,970 persons.
The centre is expected to further benefit from the impressive expanding retail expenditure within the trade area of $601.3 million, which is forecast to grow by an exceptional 3.8% p.a. to reach $1.21 billion by 2041.