By Paul Dunlop
PAKENHAM Place shopping centre has been sold for $60.5 million.
Developer Lend Lease and the Australian Prime Property Fund (APPF) announced last week they had bought the centre, confirming recent speculation in the business community.
The move sets the stage for a major expansion in the town’s retail heart.
News of the sale has been met with interest by traders, who are now waiting to see what impact it will have on Pakenham’s growing central business district.
Lend Lease retail chief executive David Hutton said the purchase reflected his company’s strategy to actively pursue retail assets in strong growth areas.
“Pakenham Place shopping centre is in one of the highest growth areas of Melbourne, and, via active management and expansion, we are confident the centre can provide significant community benefits while delivering superior investment returns,” Mr Hutton said.
Pakenham’s booming population expansion was said to be a major incentive for the centre’s new owners in closing the deal.
Lend Lease officials said the primary trade area of the centre was forecast to grow at an average population rate of 6 per cent a year over the next 10 years.
Pakenham Place shopping centre includes Target, Safeway and Coles supermarkets, Priceline and Pharmore pharmacies and more than 20 other specialty shops, including Gloria Jeans and several restaurants and food outlets.
The sale price was $10 million more than initial estimates.
Sales agency CB Richard Ellis said there was plenty of interest in the 5.07hectare, 20yearold shopping centre after longtime owner Leonora Group announced plans to sell in October.
Leonora Group spokesman Nevil Bird told the Gazette he was happy with the result. “I think it’s a real plus for the town,” he said.
Mr Bird said the sale would have no impact on centre traders’ existing leases, but expected the centre’s new owners to move ahead with longstanding plans for further development.
“They are recognised as very professional operators,” he said.
APPF fund manager Tarun Gupta said the centre’s expansion potential made it a rare buy.
“Quality retail assets with the capacity to be expanded are scarce and we are pleased to have secured this opportunity for our investors,” he said.
CB Richard Ellis association director Philip Gartland said he received 12 expressions of interest, shortlisted to five groups.
Lend Lease is no stranger to Pakenham having been active in the area since 2001.
It is developing the Lakeside residential estate in a joint venture with Cardinia Shire Council.
Lend Lease will be responsible for property and development management of Pakenham Place.