Mildura Central shopping centre could be a bargain at $81m

A “BOUTIQUE” private investment company has splashed out $81.1 million for Mildura’s premier shopping centre, promising an even greater choice of retailers for shoppers.

Commercial real estate investor IP Generation this month picked up a relative bargain after the centre’s 26 per cent fall in value over the past six years.

It bought Mildura Central from Vicinity Enhanced Retail Fund, a wholesale fund managed by Vicinity Centres, which had paid $109.75 million for the 7.35ha site back in December 2014.

The sale comes amid uncertainty over whether one of the key national tenants, Target, will remain at the popular centre.

Parent company Wesfarmers has yet to make a call on the Mildura store’s future after last year announcing 167 Target stores around the country would close as part of a massive restructure.

The new owner of Mildura Central this week told Sunraysia Daily it was unsure of Target’s long-term future in the centre, which is also home to Woolworths, JB Hi-Fi and other national tenants.

“We can’t shed any light on what their plans are,” IP Generation retail portfolio manager Jai Wallis said.

However, he said that if Target did pull the pin, the centre’s “dominance and strength” in the local market meant it was well placed to attract another national retailer.

“We’re extremely excited about the acquisition of this major local asset – and we see the potential of evolving the current tenancy mix to tailor it even more to consumers’ choice of retailers,” Mr Wallis said.

Asked whether the company believed it had picked up a bargain, he said: “I think it was well bought.

“It’s part of what we do at IP Generation. We’re a small, boutique landlord and these are the sorts of assets we like to own.

“We take a very hands-on approach – and we’re now looking forward to getting engaged with the local community.”

Lachlan MacGillivray, head of retail investment services at Colliers, oversaw the sale of Mildura Central.

He said it highlighted there was still “strong demand for regional assets with dominant characteristics”.

“The Mildura market is very resilient with good economic drivers,” he said.