A partnership between Sim Lian Group and the listed Metro Holdings Limited, both from Singapore, has snapped up Shepparton Marketplace for $88.1 million.
Situated on 12.29ha site at 110-120 Benalla Road, the Centre is anchored by Woolworths and Big W, with 36 specialty stores, five kiosks and a 265-seat food court. The Centre enjoys a high occupancy of 97.3% and a WALE of 4.1 years by income.
The 16,535sqm mall serves a catchment or around 70,000 people and is the dominant Centre east of Shepparton.
The deal reflects a capital gain for the vendor, Dexus, which paid $70.6m in 2014 for its Wholesale Property Fund.
The deal, which was exchanged in July (& settled in September) was completed based on a core cap rate of 6.25% and will be held in the Sim Lian Property Trust II which is 30% held by Singapore’s listed Metro Group.
Together with the Shapparton Marketplace, the Metro Group and Sim Lian will hold in total 17 quality freehold properties comprising 4 office buildings and 13 retail centres spanning across 4 key states, namely New South Wales, Victoria, Queensland and Western Australia, with a total appraised value of approximately A$1.2 billion (approximately S$1.1 billion). It’s key retail holdings include Town Square Redbank Plains, Everton Park Shopping Centre, Cherrybrook Village Shopping Centre and Ropes Crossing Village.
The Metro Group operates two core business segments – property investment and development, and retail – and focuses on key markets in Singapore, China, Indonesia, the UK and Australia
Group Chief Executive Officer, Yip Hoong Mun, said, “The Shepparton Marketplace acquisition marks the continued diversification for resilience of our Australian portfolio so that Metro can grow stronger, reach further and scale higher.”
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