Armstrong Creek Shopping Centre sold for $55.6 million

THE Armstrong Creek Shopping Centre has been sold to listed fund manager Home Consortium’s Daily Needs REIT for $55.6 million.

The centre, built by national commercial and residential developer Wel.Co, opened in September last year and is anchored by a Coles supermarket, mini-majors and a selection of national and non-discretionary speciality retailers.

It is located in the suburb of Armstrong Creek, one of Australia’s fastest growing suburbs with 11.6 per cent population growth per annum forecast over the next five years.

The centre sits within Wel.Co’s Armstrong Creek Town Centre, Australia’s largest privately-owned town centre with an end value of $1 billion.

Wel.Co founder and managing director Andrew Welsh said the centre sold unconditionally, with settlement at the end of the month.

“The sale to HomeCo, one of Australia’s largest fund managers, is a clear advocation to the Armstrong Creek region and highlights the high quality and calibre of the Armstrong Creek Town Centre development.

“Armstrong Creek Town Centre already plays a instrumental role as the retail and commercial epicentre for the Geelong growth corridor. With the accelerated growth of the Armstrong Creek area through the past 12 months, we are bringing forward our delivery timeframes for the future stages and are currently rolling out our master planned strategy that we have collaborated with the City of Greater Geelong council over the past five years.”

The sale to Home Consortium was brokered by Colliers’ directors of retail investment services, Tim McIntosh and Mike Crittenden.

The sale of Armstrong Creek Shopping Centre is the third neighbourhood shopping centre to change hands in the Geelong area in the past two months and has been sold on a core cap rate of 6 per cent with a rental guarantee for 12 months.

“Regional Victorian retail investments secured by ASX-listed covenants are one of the most highly sought-after commercial investments by both institutional and private investors currently,” Mr McIntosh said.

“The investor focus is driven by confidence and security in the undoubted covenants, significant regional stamp duty concessions and recent outperformance of regional growth areas compared to metropolitan Melbourne.”

HomeCo Daily Needs REIT portfolio fund manager Paul Doherty said the Armstrong Creek Shopping Centre was the only Coles supermarket in the primary trade area with a new 15-year lease to 2035.

“The centre’s strategic location provides exposure to the high population growth corridor of the Geelong region and forms an integral part of the rapidly evolving Armstrong Creek Town Centre,

“The innovation and strategy for Armstrong Creek Town Centre, under Andrew’s leadership over the last five years, is something HomeCo are excited to be a part of and look forward to helping accelerate the development and performance of the wider town centre.”