“Despite the increased cost of debt following the RBA’s tightening of monetary policy, retail spending has remained resilient at 17.9 per cent growth to September 2022, while capital remains robust for quality, strong performing, non-discretionary focused shopping centres,” Rooney said.

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Menai Marketplace is located in one of the most tightly held catchments in Sydney and anchored by one of the best-performing Woolworths supermarkets in the country, while Southlands Boulevarde will become one of only 10 triple supermarket-anchored centres nationally (with no DDS) when ALDI opens in early 2023.

The head of mandates at Lendlease Investment Management, Matt Bowyer, said the sale of these assets is a strong outcome for its investors.

“Sub-regional retail assets offering this type of essential convenience continue to perform well, supporting positive investor sentiment towards the sub-sector,” Bowyer said.

“The outlook for retail remains positive, with continued confidence in the sector experienced by strong sales often exceeding pre-COVID levels over the last year.”

In a separate deal, Lendlease’s Australian Prime Property Fund Retail (APPF Retail) has settled on the sale of Caneland Central in Mackay, Queensland, to Sentinel Property Group for $280 million.

The assets is a dominant 65,964 square metre regional shopping centre anchored by Myer, Coles, Woolworths, Target, Big W and a range of mini-majors and speciality tenants. The centre is the largest shopping centre in the region servicing over 175,000 people.

APPF Retail has owned and managed Caneland Central since 2001. It attracted a high level of interest from prospective buyers as it is the premier shopping and lifestyle destination in the Mackay region for the local community and tourists.

Nick Willis and Sam Hatcher from JLL managed the sale.

The APPF Retail fund manager, Anne MacSporran, Fund Manager said the centre has been a strong performer for APPF Retail due to its mix of retail, lifestyle and dining and core position at the heart of Mackay’s local community.

“Despite recent market volatility, the outlook for Australian retail remains positive, with sales remaining robust post the pandemic,” MacSporran said.

She added that APPF Retail is continuing to evolve in line with changing consumer demands and is positioning its assets to offer more mixed-use opportunities to cater to future lifestyle, technology and shopping needs.

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