Croydon, Bacchus Marsh shopping centres to fetch $90m

Abacus Property Group is selling The Village Bacchus Marsh shopping centre, west of Melbourne, which the group bought in 2013 and later refurbished.

The centre was expected to sell for about $70 million on a passing yield of about 6.1%, industry sources say.

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Anchor tenants include Coles, Aldi and Target Country while another supermarket chain has been in discussions about taking space. Mini-majors include The Reject Shop, Kaisercraft, Anytime Fitness, Nova Pharmacy and The Elms Medical Centre.

The Village shopping centre in Bacchus Marsh.

Abacus incoming managing director Steven Sewell says the centre has seen a rise in net income through a leasing and repositioning strategy. “Following a portfolio review it has been decided to now focus our resources on the active redevelopment projects in Brisbane, the Gold Coast and in Sydney,’’ Sewell says.

Abacus recently bought an Abbotsford office fully leased to Computershare for $93.5 million from Chinese developer Hengmao Group and an office in Sydney’s Alexandria leased to five tenants for about $48.9 million from private investor Marshall Investments.

CBRE’s Mark Wizel and Justin Dowers are agents on the deal.

The Village in Bacchus Marsh is expected to sell for around $70 million.

‘‘A retail centre that can offer key non-discretionary spend tenancies such as major supermarket chains like Coles and Aldi and that can also offer a medical centre and pharmacy with 10-year terms is a very attractive offering,” Wizel says.

‘‘Location is key for shopping centres and Bacchus Marsh Village also has the advantage of being right in the middle one of Australian’s fastest growing regional housing markets.’’

Maroondah Village Shopping Centre in Melbourne’s northeast is also for sale with expectations of about $18 million. Agents are Mr Wizel, Mr Dowers and Kevin Tong.

This article originally appeared on www.theaustralian.com.au/property.