)
Funds managed by Melbourne-based IFM Investors have acquired a four-asset neighbourhood shopping centre portfolio developed and built by Oreana Property Group, with an end value of about $300 million, in a deal that the group says affirms its faith in the suburban retail sector.
The portfolio spans Melbourne's western and northern growth corridors, comprising centres in Mickleham, Deanside, Werribee, and near Melton with the deal introduced and managed by Fawkner Property Group..
The transaction marks the first deal under a strategic partnership between IFM, Fawkner, and Oreana, although the three parties have been building their relationship over the past two years across eight neighbourhood centre acquisitions.
The portfolio includes Botanical Village in Mickleham, a 7,400sqm centre anchored by Coles with 25 specialty stores that opened on 18 March; Deanside Central, an 8,200sqm centre in Melbourne's west; Riverwalk Town Centre in Werribee, spanning 6,400sqm; and Eynesbury Village near Melton, a 6,700sqm centre that Oreana acquired from Resimax Group in July last year.
Three of the four assets remain under construction, with expected delivery over the next 18 months.
The acquisition bolsters IFM's already substantial retail property holdings.
The fund manager, which oversees $267.6 billion in assets, owns more than 50 convenience shopping centres across Australia, with its retail portfolio valued at $6 billion across more than 56 centres.
IFM Investors’ executive director of funds management Kate Mathewson says the transaction signals long-term institutional confidence in high-growth suburban retail and builds on the group's assets in key growth corridors.
“The future of retail growth sits with local and neighbourhood centres in high-growth areas," says Mathewson.
"The ones that succeed will prioritise walkability, convenience, community connection and complementary non-retail uses that bring people together.
“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.
"With these four assets sitting in above average population growth corridors, local shopping offers a strong proposition to institutional investors.”
Oreana managing director Tony Sass says the portfolio reflects the group’s strategy of delivering high-quality neighbourhood centres in Australia’s fastest growing communities, anchored by everyday retail and complementary uses such as childcare.
“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,” says Sass.
“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.
“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.”
Oreana maintains a broader development pipeline of more than $4.8 billion, with $1.1 billion in retail projects.
Melbourne-based Fawkner Property Group, which has a national portfolio valued at more than $5 billion across more than 160 assets, played a central role in originating and managing the deal.
Fawkner Property executive director Patch Garnaut says the transaction underscores the deepening relationship between the three parties.
“We are delighted to expand our ongoing relationship with both Oreana and IFM, to which we have now partnered or managed the acquisition of eight neighbourhood shopping centres over the past two years,” says Garnaut.
Financial terms including the acquisition price, capitalisation rates and the specific IFM-managed funds involved in the transaction have not been disclosed.
)
