ISPT, the leading property fund manager, is bringing to market its  50% interest in Cranbourne Park Shopping Centre,, providing investors with an opportunity to acquire a share in a dominant sub-regional shopping centre underpinned by 7.51 hectares of freehold land in the heart of Melbourne’s burgeoning south-east corridor. The Sub-Regional Centre is managed and co-owned by retail giant Vicinity Centres. 

JLL’s Retail Investments team – Nick Willis, Sam Hatcher and Stuart Taylor alongside Stonebridge’s Justin Dowers, Carl Molony and Philip Gartland have been exclusively appointed to sell Cranbourne Park via an Expressions-Of-Interest campaign on behalf of ISPT.

Cranbourne Park stands in dominance, boasting the distinction of being the largest centre in the total trade area, with specialty productivity exceeding $10,000/sqm, placing it in the top 20 of Little Guns reported by SCN in 2023. Anchored by Coles, Target, Kmart and Harris Scarfe, alongside an extensive tenancy mix including, 25 food catering tenants, 29 apparel tenants and 23 retail service providers, with occupancy at 97%. 

The Centre is strategically positioned to capitalise on the significant growth in the catchment. The primary trade area is experiencing an annual growth rate of 2.5%, outpacing the Greater Melbourne average by an impressive 47%, serving as a promising opportunity for Cranbourne Park’s future growth.

Mr Hatcher said “Capital is taking a keen interest in the sector, with new waves of investment pouring in. We have witnessed an impressive influx of $886 million in maiden capital over the past 12 months, and this is only on the rise. Moreover, our bid data for retail properties is increasing, particularly across the APAC region where retail garners the highest level of engagement, averaging an impressive 6.5 bids per on-market opportunity.”

In 2015, the active managers undertook a significant $113 million revitalisation and expansion, seeing the introduction of Target into the trade area, an additional 12,500 sqm of retail space and a state-of-the-art food precinct. As a result, Cranbourne Park has ascended to become a prominent social hub within southeastern Melbourne. It now stands as a pivotal town centre, playing a crucial role in the strategic development and serving as a gateway suburb to the ever-evolving Cranbourne region.

Mr Molony said “Opportunities to acquire a sub-regional asset in metropolitan Melbourne are rarely available, the offering is the second to be formally offered this year in Melbourne. The asset is underpinned by strong population growth and over 55,500 dwellings forecast to be developed within the direct trade area of the Centre, driving strong forecast retail spending.” 

Cranbourne Park is purposefully positioned with an expansive frontage of over 500 meters to South Gippsland Highway. This major thoroughfare serves as a vital route for over 18.6 million passengers annually, facilitating seamless connectivity between the local residents and the bustling heart of Melbourne CBD. The property's exceptional accessibility and pivotal role as a transit hub are further amplified by recent infrastructure upgrades.

The Narre Warren - Cranbourne Road upgrade and the Cranbourne Station upgrade, collectively amounting to an investment of nearly $1.5 billion by both local and state governments, have significantly enhanced the transportation infrastructure in the area. These transformative projects not only bolster the ease of population access to Cranbourne Park but also solidify its status as a thriving transit hub within the region.

Mr Willis said “Given the high-quality management in place and the significant refurbishment, the offering of Cranbourne Park provides capital a unique opportunity to get set in a core metropolitan Melbourne asset. We anticipate interest from domestic private investors and syndicators, who have been the largest buyers of retail over the past three years, totalling some $12.9bn. Further given the fundamentals of this asset we expect interest from a range of offshore investors and funds looking to re-engage in the sector.”

Expressions of interest for Cranbourne Park close Wednesday 9th October 2024.

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