IP Generation settle on its priciest property
IP Generation has settled on its priciest property – the 10 year old Craigieburn Central, north of Melbourne – for $300 million.
The 24.87 hectare asset – about 30 per cent (7.6ha) which is undeveloped – was offered by Lendlease and its Australian Prime Property Fund (APPF) Retail, which held equal shares.
With 64,837 square metres, the complex is anchored to Aldi, Big W, Coles, Kmart, United Cinemas and Woolworths.
Including 139 specialty stores, the Weighted Average Lease Expiry is 9.8 years.
There are also 2693 car parks.
The transaction, mooted last month, comes hot on the heels of IP Generation buying a half-stake in Perth’s Rockingham Centre for $180m.
That seller, AMP Capital, outlaid $305m for the share in late 2017 – a property peak.
Like Craigieburn Central, it contains just over 60,000 sqm of lettable area.
It also includes an undeveloped tract – spreading 4.2ha.
However the WALE is much lower at 3.6 yrs.
Established in 2018 by Chris Lock, IP Generation has additionally over the past 36 months secured a portfolio of major malls at Richmond in Sydney, and in regional New South Wales, at Cessnock, Gosford and Goulburn, from Paul Lederer.
It also purchased a half interest in Gold Coast’s Westfield Helensvale from QIC – a $185m deal.
The group acquired Mildura Central too, in regional Victoria, for $78.1m after cash contributions by that seller, Vicinity (story continues below).
Residential coming to Craigieburn Central
With Craigieburn Central, IP Generation now controls assets worth $1.5 billion.
“Craigieburn Central is a dominant…retail destination generating approximately $378m of Moving Annual Turnover,” the buyer said.
“The centre’s accessibility, quality and scale are unrivalled with its fast growing trade area, which services over 200,000 residents,” it added.
“[It has also] exhibited strong trend sales growth, with…MAT and specialty sales productivity rising 26pc and 25pc respectively, year on year,” according to the group.
“Forecast population growth, together with retail price inflation, is expected to continue to support MAT growth for the centre in the medium term”.
The surplus land, meanwhile, it said “presents meaningful opportunities for IP Generation to unlock additional value through well considered and master-planned mixed use development that complements the main town centre”.
Earlier this month we reported Lendlease listed Cairns Central – on 9.4ha – with c$500m price hopes.
Colliers’ Lachlan MacGillivray with McVay Real Estate’s Sam McVay are the agents.
CBRE’s Simon Rooney brokered the Craigieburn Central deal.
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