IFM acquires shopping centre portfolio for $300m

IFM Investors has acquired a shopping centre portfolio to be developed and built by Australian-owned developer-builder Oreana with a value of approximately $300 million, as it seeks to harness a surge in convenience-based shopping.

The portfolio of four sites in Melbourne includes Botanical Village in Mickleham, Deanside Central in Deanside, Riverwalk Town Centre in Werribee and Eynesbury Village near Melton.

IFM Investors executive director of funds management Kate Mathewson said the transaction signalled long-term institutional confidence in high-growth suburban retail.  IFM owns over 50 convenience shopping centres across Australia.

"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," Mathewson said.

"This is an asset class that is resilient, essential and we believe, positioned to help us deliver for our clients and the millions of working people they represent."

The transaction was introduced and managed by Fawkner Property Group and is the first transaction as part of a strategic partnership between IFM, Fawkner Property and Oreana.

Oreana has five centres currently in construction across Melbourne.

Oreana managing director Tony Sass said each site represented the group's successful model of developing and building convenience retail co-located with childcare in new communities, providing one-stop-shop benefits.

"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," Sass said.

The deal comes as Botanical Village in Mickleham recently reached completion opening in March. The centre is anchored by a Coles and 25 specialty stores co-located with an Aspire Early Learning & Kindergarten. The three other assets remain under construction are expected to be delivered over the next 18 months.

"Developments like these purchased by IFM, play a vital role in building and uniting greenfield communities, offering residents a shared space to meet, connect and truly feel at home in their growing neighbourhood," Sass added.

"The sale of these assets reflects the resilience and growth in demand for local shopping post-COVID, and the unique strength of Oreana's integrated model that delivers high-quality retail fast and with little fuss."