Savills Research Victoria

Quarter Times Melbourne Retail

Q4/2013

Savills Research | Quarter Times

Quarter 4 2013

Key Market Indicators

Melbourne Enclosed Centres Regional Low Major Tenant Net Rental ($/sq m) DDS Tenant Net Rental ($/sq m) Specialty Tenant Net Rental ($/sq m) Yield - Market (%) IRR (%) Outgoings Operating ($/sq m) Outgoings - Statutory ($/sq m) Outgoings - Total ($/sq m) Capital Values ($/sq m)
Source: Savills Research

Sub-Regional High 250 250 1,500 7.00 9.25 120 40 160 Low 200 200 550 7.25 9.00 75 25 100 2,500 High 240 240 1,250 9.00 9.75 110 35 145 5,000

Neighbourhood Low 200 na 450 7.25 9.00 45 25 70 2,000 High 240 na 550 9.00 10.00 75 35 110 4,500

230 230 750 5.50 8.50 90 30 120 4,000

12,000

Melbourne Shops Bourke St Mall Low Net Rental ($/sq m) Yield - Market (%) Outgoings Operating ($/sq m) Outgoings - Statutory ($/sq m) Outgoings - Total ($/sq m) Capital Values ($/sq m)
Source: Savills Research na = not currently available

Other CBD Low 1,200 4.00 60 80 140 14,000 High 4,000 7.00 100 80 180 40,000

Shopping Strip Low 550 4.00 30 40 70 7,500 High 1,400 7.50 50 40 90 35,000

High 10,000 5.50 100 160 250 na

6,500 3.50 80 150 230 na

Melbourne Bulky Goods Bulky Goods Low Tenant Net Rental ($/sq m) > 1,000sq m Yield - Market (%) IRR (%) Outgoings Operating ($/sq m) Outgoings - Statutory ($/sq m) Outgoings - Total ($/sq m) Capital Values ($/sq m)
Source: Savills Research

High 280 10.50 11.00 30 7 40 2,700

175 9.00 10.00 25 7 30 1,300

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Savills Research | Quarter Times

Quarter 4 2013

Major Sales Activity

Select Retail Shop Sales Date Jun-13 Jun-13 Jun-13 Jun-13 Jun-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Oct-13 Oct-13 Oct-13 Oct-13 Nov-13 Nov-13 Nov-13 Nov-13 Nov-13 Property 179-181 Domain Rd, South Yarra 105-109 Wattletree Rd, Malvern 40-46 Little Bourke St, Melbourne 268-270 Lonsdale St, Melbourne 565-567 Church St, Richmond 1255 Frankston Dand Rd Carrum Downs 408-414 Swan St, Richmond 454 Toorak Rd, Toorak 403-403a St Kilda Rd, Melbourne 4 Princess Domain Dr, Hallam 231-233 Russell St, Melbourne 50-52 Wells St, Frankston Shop1, 92-98 Evans St, Sunbury 462-472 Elizabeth St, Melbourne 254 Collins St, Melbourne 460-488 Riversdale Rd, Camberwell 761 Burke Rd, Camberwell 138 Bourke St, Melbourne 164-168 Greville St, Prahran
na = not currently available *equated yield

Price ($m) 4.83 3.40 5.30 7.15 2.05 3.82 10.00 7.43 4.32 15.61 5.05 5.38 5.03 18.00 14.21 9.00 13.00 20.00 9.10

GLA (sq m) 330 640 1,022 498 257 300 1,800 744 481 3,552 450 736 2,500 950 398 1,337 1,457 4,800 1,890

$/sq m 14,636 5,313 5,186 14,357 7,977 12,733 5,556 9,980 8,981 4,395 11,222 7,303 2,012 18,947 35,704 6,731 8,922 4,167 4,815

Yield (%) na na 5.48 2.74 na 7.17 na 5.25 4.13 5.96 4.40 6.31 9.42 na 4.42 8.16* na 8.50 6.79

Source: Savills Research

VP = vacant possession

Select Enclosed Centre Sales Date May-13 May-13 May-13 May-13 Jun-13 Jun-13 Jun-13 Jun-13 Jun-13 Jun-13 Jun-13 Jun-13 Jun-13 Property Showground Village Flemington (75%)** Taylors Hill Village (75%)** Lilydale Village (75%)** Tarneit West Village (75%)** Healesville Walk Langwarrin Plaza** Alfred Square, Ballarat** Drouin Central** Ocean Grove Marketplace** Target Centre Warrnambool** Wyndham Vale Square** Sunshine Marketplace (50%)** Bacchus Marsh Village Shopping Centre Price ($m) na na na na 21.20 17.20 20.00 12.30 29.90 19.50 18.20 40.50 31.60 GLA (sq m) 11,054 7,431 5,452 5,020 4,971 5,087 8,964 3,798 6,910 6,984 6,914 33,812 15,147 $/sq m na na na na 4,265 3,381 2,231 3,239 4,327 2,792 2,632 2,396 2,086 Yield (%) na na na na 7.93 7.80 7.50 8.00 7.50 8.00 8.00 7.42 8.75*

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Savills Research | Quarter Times

Quarter 4 2013

Date Jul-13 Jul-13 Sep-13 Oct-13 Oct-13 Nov-13 Dec-13

Property 65 Merchant St, Docklands Gisborne Central Shopping Centre 206 Bourke St, Melbourne Lynbrook Village Rosebud Plaza Bright Village** Bendigo Marketplace
na = not currently available *equated yield

Price ($m) 14.50 10.80 105.00 30.00 100.00 9.00 165.00

GLA (sq m) 2,843 3,696 11,844 6,811 23,847 3,257 23,919

$/sq m 5,100 2,922 8,865 4,405 4,193 2,763 6,898

Yield (%) 6.28 7.76* 7.74 8.00 7.80 na na

Source: Savills Research

**part of port folio sale, approx sale price based on book value where available

Select Bulky Goods Sales Date Jun-13 Jul-13 Oct-13 Dec-13 Property Bunnings, Warragul Home HQ, Nunawading House & Home, Moorabbin Bunnings, Torquay
na = not currently available *equated yield

Price ($m) 4.63 48.00 31.50 11.20

GLA (sq m) 5,094 22,871 13,883 6,740

$/sq m 909 2,099 2,269 1,662

Yield (%) 8.54 9.79* na 6.52

Source: Savills Research

VP = vacant possession

Select Freestanding Sales Date Mar-13 Apr-13 Apr-13 May-13 May-13 Jun-13 Nov-13 Nov-13 Nov-13 Property Tasman, 1358 North Rd, Oakleigh South IGA, 525 Stud Rd, Wantirna South KFC, 157-159 Nepean Hwy, Mentone Ritchies, 2 Eramosa Rd West, Somerville Midas, 267 Whitehorse Rd, Balwyn KFC, 1255 Frankston Dandenong Rd, Carrum Downs Dan Murphy, Warrnambool** Woolworths, Maffra** Big W, Mildura**
na = not currently available

Price ($m) 4.90 3.65 3.51 2.56 2.85 3.82 5.70 9.30 23.00

GLA (sq m) 1,566 897 258 na na 300 4,534 2,323 9,160

$/sq m 3,129 4,069 13,585 na na 12,733 1,257 4,003 2,511

Yield (%) na 7.37 6.48 7.35 4.30 7.17 na na na

Source: Savills Research

**part of port folio sale, approx sale price based on book value where available

Select Development Site Sales Date Feb-13 Jun-13 Property 850 Plenty Rd, Reservoir 565-567 Church St, Richmond
na = not currently available

Price ($m) 18.70 2.05

Area (sq m) 42,450 264

$/sq m 441 7,765

Source: Savills Research

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Savills Research | Quarter Times

Quarter 4 2013

Current Retail Construction

Major Centres Currently Under Construction Centre Barkly Square Stage 2 Woolworths Shopping Centre Masters Masters Epping Plaza Woodgrove Shopping Centre Craigieburn Town Centre Pakenham Lifestyle Centre Collins Square, Collins Street Coburg Hill Neighbourhood Hub The Emporium IKEA Campbellfield Brimbank Central The Strand Arcade The William The Mentone Centre Central Shopping Centre Millers Road Homemaker Centre The Galleria 567 Collins Street (ground floor) Eastland Shopping Centre Smith Street Mixed Use Dev (Coles)
Source: Savills Research na = not currently available

Suburb Brunswick Tarneit Keysborough Williams Landing Epping Melton Craigieburn Pakenham Docklands Coburg Melbourne Campbellfield Deer Park Melbourne Melbourne Mentone South Morang Altona Melbourne Melbourne Ringwood Collingwood

Type Sub Regional Neighbourhood Bulky Goods Bulky Goods Major Regional Sub Regional Sub Regional Bulky Goods City Centre Neighbourhood City Centre Bulky Goods Sub Regional City Centre City Centre Bulky Goods Neighbourhood Bulky Goods City Centre City Centre Regional Supermarket

New

Extension

Refurb 17,462

Completion complete complete complete complete

6,000 13,000 13,500 5,000 25,000 55,000 31,673 10,000 4,500 47,000 41,000 na 9,498 2,000 29,860 4,600 24,460 5,600 2,000 45,000 4,000

complete complete complete complete staged staged Mar-14 Mar-14 May-14 May-14 Jun-14 Jun-14 Dec-14 Dec-14 Mar-15 Jun-15 Feb-16 Feb-16

This information is general information only and is subject to change without notice. No representations or warranties of any nature whatsoever are given, intended or implied. Savills will not be liable for any omissions or errors. Savills will not be liable, including for negligence, for any direct, indirect, special, incidental or consequential losses or damages arising out of our in any way connected with use of any of this information. This information does not form part of or constitute an offer or contract. You should rely on your own enquiries about the accuracy of any information or materials. All images are only for illustrative purposes. This information must not be copied, reproduced or distributed without the prior written consent of Savills. Savills 2014

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Quarter 4 2013

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