VF Franchise Consulting

Two record months for retail property investment

Dec 11, 2013

Australia’s retail investment property market during October and November reached $1.5 billion worth of transactions—a record two months, which brings the market closer to another stand-out year.

Transactions in Australia’s retail investment market skyrocketed to $1.5 billion over just two months, from October to November 2013. These transactions alone make up one quarter of the total sales for the year to date ($6.1 billion), according to Jones Lang LaSalle (JLL).

As a result, 2013 will be a record year for investment, closing in on the 2012 Australian record of $6.4 billion for the full year.

Over the past few months, major transactions include the sale of Harbour Town Perth in WA for $205 million; Bunbury Forum (pictured) in WA for $143.2 million; Rosebud Plaza in Victoria for $100 million; and Oxford Square in NSW for $62 million.

According to JLL, an important factor contributing to the increase in investment is liquid market conditions, allowing vendors to unlock capital for redeployment into development and acquisitions.

Several trends are affecting the retail investment market at present. For example, increased opportunities in the sub-regional market where yields are attractive and the potential for capital growth is strong, plus activity in the bulky goods sector is at an all-time high. These factors—along with continued market liquidity—will all contribute to another positive year for retail investment in 2014.

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