IFM Investors has acquired a shopping centre portfolio to be developed and built by Australian-owned Oreana with an end value of approximately A$300m (€184m).
The property arm of the global infrastructure fund manager purchased four sites in Melbourne’s growth suburbs comprise Botanical Village Mickleham, Deanside Central in Deanside, Riverwalk Town Centre in Werribee and Eynesbury Village near Melton.
Fawkner Property Group sourced the assets and will manage the portfolio for IFM. It is the first transaction as part of a strategic partnership between IFM, Fawkner Property and Oreana, an integrated developer-builder.
Kate Mathewson, executive director of funds management at IFM Investors, said the transaction signalled long-term institutional confidence in high-growth suburban retail. She described convenient retailing as a resilient and essential asset class.
“By targeting high-quality assets in key growth corridors, IFM continues to build on its well-established portfolio in the retail sector, with ownership of over 50 convenience shopping centres across Australia,” she said.
“The future of retail growth sits with local and neighbourhood centres in high-growth areas. The ones that succeed will prioritise walkability, convenience, community connection and complementary non-retail uses that bring people together.”
The first of the centres to be completed is Botanical Village in Mickleham and the remaining three assets are under construction and expected to be delivered over the next 18 months.
Parch Garnaut, executive director at Fawkner Property, a specialist retail fund manager, said: “We are delighted to expand our ongoing relationship with both Oreana and IFM, to which we have now partnered or managed the acquisition of eight neighbourhood shopping centres over the last past two years”.
Oreana managing director Tony Sass said: “Oreana’s retail model is about more than just delivering a place to shop – it’s about creating a central hub in new communities where daily life is easier and more connected.
“The sale of these assets reflects the resilience and growth in demand for local shopping post-COVID.”
