He said the trust had re-examined its yield hurdles in light of the Reserve Bank of Australia’s interest rate hike.

“We have a different vision today than we had a month ago,” he said.

Although he said cap rates – or yields – could rise “a bit” in the long term, the secure cash flows generated by convenience shopping centers and strong investor demand for these assets meant that ” the values ​​will remain the same or increase”.

“Everyone needs to eat and everyone needs to go to the doctor,” Mr Mellowes said.

He said rising inflation would also be a boon for the ASX-listed group.

“Inflation is good for us because our rents will go up,” he said.

Highlighting continued strong demand for convenience stores, JLL sales agents Sam Hatcher, Jacob Swan, Nick Willis and Ben Parkinson said they received 21 offers in total for the portfolio or individual malls.

“Investment activity in neighborhood centers in 2022 continues to be strong, with 22 assets trading in the first half of the year, for a total of $900 million,” Hatcher said.

“The non-discretionary retail sector is proving to be the most resilient of all sectors, and we expect capital to continue to increase their allocations to this highly defensive sector,” he said.

JLL sold the portfolio on behalf of Primewest, a subsidiary of Centuria Capital, which held the five properties in two unlisted closed-end funds.

Collectively, the divestments will generate a performance fee of $5.7 million for Centuria.

“Both funds have been held for a long time and the sales are providing attractive returns for our investors,” said co-CEO Jason Huljich.