This article is from the Australian Property Journal archive
FORMER AFL star Chris Langford’s Newmark Capital has turned its back on approved plans to redevelop Brandon Park Shopping Centre, deciding instead to lob the land-rich asset to the market, as activity buzzes in the retail investment sector.
Newmark Capital acquired the Coles and Aldi-anchored centre for $135 million in 2018 and obtained development approval in 2022 to add further medical, retail, commercial and residential usage across the 5.81-hectare site.
Langford, Newmark’s managing director, said the sale “offers a unique opportunity to enhance the retail centre via re-positioning combined with large-scale mixed-use development”.
CBRE’s Simon Rooney, James Douglas and David Minty, together with JLL’s Stuart Taylor, Nick Willis and Jesse Radisich are managing the sale.
Brandon Park Shopping Centre currently offers a gross lettable area of 23,038 sqm, for a low site coverage of 40%.
In addition to the supermarket anchors, the centre offers five mini-majors and 86 specialty tenancies and kiosks.
“We expect Brandon Park to attract strong domestic and offshore investor interest, as metropolitan Melbourne investment opportunities offering the scale of Brandon Park, value-enhancing opportunities and an approved development application in place are rarely offered to the market,” Rooney said.
Taylor added, “The asset provides an extraordinary opportunity for both traditional retail investors and mixed-use capital to secure a major island site in Melbourne’s prized south-eastern suburbs, which is underpinned by strong retail fundamentals whilst providing exceptional value-add and development optionality.”
Situated in Wheelers Hill, around 19 kilometres south-east of the Melbourne CBD and two kilometres from Monash University. It is adjacent to Victoria’s largest employment hub outside of the CBD, the Monash National Employment and Innovation Cluster, in a location that provides a main trade area of 85,870 residents and a local workforce of 6,000 within a one-kilometre radius
The centre provides convenient access to major arterial roads and broader Melbourne from its corner location on Springvale Road and Ferntree Gully Road.
Rooney said shopping centres are evolving into multi-dimensional precincts and fully integrated “living sectors” with the introduction of residential, serviced apartment and hotel offerings.
In Melbourne’s south-east, Golden Age has developed 536 apartments across three residential towers in the air space above The Glen Shopping Centre.
Most transactional activity across the wider retail sector in recent times has been for neighbourhood shopping centres. However, activity is starting to stir for larger assets after deal-making in the commercial real estate market slowed down amid higher interest rates and a stand-off on values between buyers and sellers. ISPT is offloading another key Sydney shopping centre, tipping the Coles and Aldi-anchored Dee Why Grand to the market, just a few weeks since the announcement of its near-$127 million sale of the Eastgate Bondi Junction sub-regional centre to Charter Hall.
