CBRE Victorian Retail Investments listed the centre and land – on the corner of Wilson Street and Park Drive – for sale about two months ago.

Horsham Gateway Centre houses Target and other businesses including Ginger Chilli, Kawaii Kids and Snap Fitness.

Gateway Property Developments announced plans to construct the shopping centre in 2011.

The $12-million development created more than 250 jobs during its construction phase. Target – the centre’s anchor store – opened in May 2013.

CBRE Victorian Retail Investments’ Mark Wizel, Justin Dowers and Kevin Tong negotiated the transaction of the centre on behalf of a private developer.

Mr Dowers said the property was underpinned by a 1.21-hectare site, and had scope for future development.

He said the property’s sale listing attracted strong buyer interest from Victorian, interstate and offshore global investors.

He said the successful purchaser outbid a number of private Australian groups, as well as Singaporean investors.

“There is no doubt that investors’ view of discount department stores has tapered in recent times off the back of inconsistent performance,” he said.

“However, it was imperative for this campaign to focus on the opportunity of having a large space leased to a major national tenant.

“The quality of the Target lease covenant remains just as strong as a Woolworths or Coles supermarket, however the rent per square metre is generally substantially less.

“Furthermore, having 3000 square metres to 7000 square metres of retail space currently leased to discount department stores tenants in prime located centres offers a strategic opportunity for future higher and better use.”

Mr Wizel said the strength of the Wesfarmers-backed tenant generated strong demand from investors.

“The sale of Horsham Gateway Centre is a very strong statement for the overall confidence that buyers have for retail assets both in regional locations and those that are leased to discount department stores,” he said.

“Over the past 24 months, Chinese investors have spent more than $380 million acquiring shopping centres across Victoria.

“This highlights the ongoing strength in investment appetite for well-located assets backed by strong tenancy profiles.”

Horsham Gateway Centre has a fully leased net income of $1,205,000 a year.