APPF Retail sells Craigieburn Central

  • 24 Apr 2023
Lendlease’s Australian Prime Property Fund (APPF) Retail and co-owner Lendlease Group have exchanged contracts on the sale of Craigieburn Central to IP Generation for a gross price of $300 million (excluding transaction costs and settlement adjustments).

Developed by Lendlease and opened in 2013, Craigieburn Central is located in one of Melbourne’s fastest growing regions and comprises approximately 157 specialty stores, together with a range of major retailers and entertainment offers, as well as bulky goods and commercial tenants.

Craigieburn Central has long been 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.

Simon Rooney, CBRE’s Head of Retail Capital Markets, Pacific, negotiated the sale on behalf of the vendors.

Quotes attributable to Anne MacSporran, Fund Manager, APPF Retail:

“APPF Retail is repositioning its shopping centre portfolio of prime quality assets to take advantage of changing consumer demands and urban growth opportunities.

“The Fund is focused on investing in and creating multi-purpose, mixed use centres, catering to multiple aspects of customers’ lives. By unlocking the value of surplus land surrounding our assets to deliver development opportunities, we aim to further activate our retail centres and deliver resilient, long-term performance for our investors.”

Quotes attributable to Simon Rooney, Head of Retail Capital Markets, Pacific, CBRE:

“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.

"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.”

For more information:
Tessie Vanderwert, General Manager External Affairs Lendlease Australia
Mobile: +61 428 483 828