Craigieburn Central has been sold for $300 million to investor firm IP Generation in an exchange of contracts between Lendlease and its co-owned Australian Prime Property Fund (APPF) Retail.
Located 25 kilometres north of Melbourne city, Craigieburn Mall comprises 157 specialty retailers. This includes fashion and accessories retailers such as Ally, Bonds, Bras & Things, Colette by Colette Hayman, Connor and Cotton On.
The mall is also anchored by department stores such as Best&Less, Big W, Kmart and TK Maxx.
IP Generation has acquired circa $1 billion in shopping centres since 2021, including its most recent purchase of ASCF’s 50% stake in Western Australia’s Rockingham Centre for $180 million.
Craigieburn Central is reportedly a sought-after asset due to its location in a growing catchment area, mix of quality tenants and value-add potential.
APPF Retail held a 75% interest in the Centre, with Lendlease Group holding a 25% interest.
CBRE head of retail capital markets Simon Rooney negotiated the sale on behalf of the vendors, representing the largest retail transaction in Victoria since 2018 and nationally since December 2021.
“The sale was a highly competitive pricing outcome for APPF Retail and Lendlease, simply reflective of the attractive inherent, long term and deep value fundamentals Craigieburn Central offers, valued accordingly by proactive private capital that dominates the retail investment landscape across Australia at present,” Rooney said.
"The retail sector is set to benefit from migration, resilient spend in the face of already high interest rates and very low new supply in the market after a period of under-investment in the sector.”