Vicinity Centres has divested its shares in Victoria's Corio Central and Brisbane's Mt Ommaney Centre for nearly $200 million.

CBRE’s Head of Retail Capital Markets, Simon Rooney negotiated the sales, with Corio Central acquired by IP Generation Pty Ltd for $101.0 million and the quarter stake in Mt Ommaney Centre purchased by YFG Shopping Centres for $94.5 million.

Mr Rooney said the sales reflected signs of more positive investor sentiment and heightened enquiry levels for retail assets.

At a glance:

• Vicinity Centres has divested its 100 per cent share in Victoria's Corio Central and its 25 per cent share in Brisbane's Mt Ommaney Centre for a combined total of $195.5 million.
• The sales were negotiated by CBRE's Head of Retail Capital Markets, Simon Rooney.
• Corio Central was acquired by IP Generation Pty Ltd, while the quarter stake in Mt Ommaney Centre was purchased by YFG Shopping Centres.

“There is a general acknowledgement that the retail sector has been over-sold, and that stabilised, better quality assets with an obvious growth and value add profile represent an attractive value proposition compared to other sectors," he said.

“An increasing number of these strategic retail assets, that have traditionally been long term institutional holds, are now presenting themselves.

The opportunity to acquire these core and core-plus retail holdings, at either current or recalibrated values, is becoming very appealing as evidenced by current and soon to be announced transactions.”
 
IP Generation is a property-based investment syndication which has completed over $250 million of property transactions within the past 12 months.

Situated in an established northern Geelong suburb, approximately 68km south-west of the Melbourne CBD, Corio Central comprises 31,052 square metres and benefits from a diverse tenant mix with major, chain and national retailers providing 87 per cent of the GLA.

The Mt Ommaney Centre, Brisbane. Source: CBRE

Mr Rooney said Corio Central provided the group with a sub-regional centre securely anchored by Coles, Woolworths and Kmart on leases until at least 2025 – representing 44 per cent of the gross lettable area (GLA).

“Investors are targeting sub­regional centres like Corio Central, which have a strong non-discretionary tenant mix and provide a solid convenience centre offering,” he said.

“In this instance, interest was underpinned by the significant investment occurring in Geelong, boosted by the recently announced Geelong City Deal – a 10-year partnership between the Federal and State Government which will provide the city with a $1.1 billion economic boost.”

The 25 per cent stake in the Mt Ommaney Centre has been acquired by YFG Shopping Centres, a family business which controls 20 shopping centres in south-east Queensland, including Australia Fair on the Gold Coast and Brookside Shopping Centre in Brisbane's north.

The largest and most dominant shopping centre in the trade area, Mt Ommaney has a total GLA of 56,469sqm, over 20,000sqm larger than the next most significant retail centre.

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