ISPT has sold its 50% stake in Cranbourne Park Shopping Centre to IP Generation for $126.5 million, the largest VIC retail transaction to date in 2024, highlighting the growing appetite for well-positioned metropolitan assets.

JLL’s Nick Willis, Sam Hatcher and Stuart Taylor, along with Stonebridge’s Justin Dowers, Carl Molony and Philip Gartland managed the sale of the dominant Sub-Regional Shopping Centre, which occupies a 7.5-hectare site 47km southeast of Melbourne CBD.

Cranbourne Park, a dominant Sub-Regional Shopping Centre in Melbourne’s southeast, underwent a significant transformation since its original development in 1984.

A $113 million expansion and revitalisation in 2015 added 12,500 sqm of retail space and introduced Target as a major tenant, cementing its position as the largest shopping centre in the total trade area.

Cranbourne Park's secure income profile is underpinned by 92% of the centre being supported by national retailers. The centre is strategically positioned in Melbourne’s southeastern growth corridor, which is estimated to expand by over 55,500 dwellings.

Its location, just 1.2km from Cranbourne train station, further enhances its accessibility and appeal.

Mr Hatcher from JLL said “The acquisition of a non-management interest by a syndicator signifies the fight for quality metropolitan retail assets in a market where formal availability of opportunities remains low. Further this highlights capital’s intensifying demand for the sector.” 

Mr Willis from JLL said "Whilst we continue to see strong participation from the syndicator cohort, who have dominated the sector in recent years, we are now seeing the re-emergence of major institutional capital looking to reweight back toward the sector.

Over the past 4 years Syndicators have accounted for over $3.0 billion of sub-regional transactions, more than 40% of total sub-regional transactions, more than any other capital type.”

Mr Dowers from Stonebridge said, “The campaign generated strong national interest from a number of syndicators and private investors, which continues the capital demand trend for retail and particularly, sub-regional centres.”

Mr Molony from Stonebridge said, “As the retail landscape continues to evolve, sub-regional centres are likely to remain a focus for investors seeking both income security and value-add opportunities.

This transaction serves as a testament to the resilience and evolving nature of the retail property market, signalling a potential shift in investor sentiment towards quality retail assets in strategic locations."

Despite the subdued transaction conditions in Victoria, this transaction highlights the enduring appeal of quality retail assets. Victorian transaction volumes are at their lowest point in 12 years, sitting 50% below the 15-year average.

However, the successful sale of Cranbourne Park Shopping Centre demonstrates that well-positioned, high-quality retail properties continue to attract significant investor interest.

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