This article is from the Australian Property Journal archive
NON-bank lender MaxCap and Troon Property Group have been confirmed as the buyers of a $13 million large format retail development site from German hypermarket Kaufland, while also offloading a BMW site for $17 million.
The Chirnside Park site in Melbourne’s eastern suburbs was set to be among Kaufland’s first supermarkets before the group pulled the plug on its Australian operations without opening a single store.
The move left hundreds of millions worth of sites available, and Toon and Maxcap are planning a large format development of more than 11,000 sqm for the property.
Simon Hulett, MaxCap’s head of direct investment, revealed the lender had eyed off much more than just the Chirnside Park property.
“We had a good crack at the full Kaufland portfolio earlier in the year before Kaufland lected to divest the sites individually. Subsequently, we were able to secure the Chirnside Park site which was at the top of our list so we are happy with the outcome.”
Other Melbourne sites held by Kaufland included a nine hectare distribution facility that was sold to FIFE Capital and DHL, while large format retail centre owner Aventus Group acquired a 31,470 sqm site adjoining its Epping Home centre for $11.5 million, and Woolworths picked up a property in Dandenong.
Hulett said Chirnside Park is an established retail precinct with mature trading and leasing history.
“A well-priced greenfield development site with major frontage to Maroondah Hwy is a strong strategic play for us,” he added.
Managing director of Troon Group, Tom McInerney said strong interest had already been received from retailers prior to launching the formal leasing campaign, and is well progressed with pre-sales of the pad sites fronting Maroondah Hwy.
“Foot traffic and spending in the large format retail space has remained strong nationally through the pandemic so we are confident of securing a robust tenant profile ahead of the forecast completion of the centre in 2022.”
The joint venture partners have also sold their BMW Berwick development in Narre Warren to ASX-listed Eildon Capital Group for $17 million. The fund-through arrangement will see Eildon syndicate the asset on completion this month.
It occupies a 6,376 sqm land holding and will be home to a 3,055 sqm purpose built dealership on a new 15-year lease term. Parent contracting arm, H.Troon has been constructing the property.
The off-market transaction was negotiated by JLL’s Stuart Taylor.
Hulett also confirmed that the sales campaign has closed for the recently completed commercial office building at Hamilton St, adjacent to Mont Albert train station in the inner east of Melbourne, which is now under contract with a local purchaser. Nearly all of the 4,000 sqm of net lettable area has been leased to Telstra Business Centre and Laing O’Rourke. The sales campaign was managed by Colliers International.
