This article is from the Australian Property Journal archive
ASSEMBLY Funds Management and Cadence Property Group have teamed up to buy a Harvey Norman anchored large format retail centre at Sunshine North in Melbourne’s north-west in an off market deal for $39 million.
The 22,000 sqm centre located 484 Ballarat Rd was sold by Queensland based Sentinel Property Group, representing a fully let market yield of 6.95%. The deal was brokered by JLL’s Stuart Taylor.
Occupying a 6ha parcel of land opposite the Albion Station, within the Sunshine Town centre, it is adjacent to a major Bunnings superstore, the centre comprises 15 separate tenancies.
The asset will be held in the recently launched first fund ADPF1. The partners plan to revitalise the asset by undertaking a capital works program, a full rebranding and initiating active management of the centre to enhance its performance.
“The centre has had limited investment and attention over the past few years and presents a clear opportunity for us to add value through active management and capital initiatives,” Cadence managing director Charlie Buxton said.
The land is zoned for high density commercial and residential development which carries significant future redevelopment potential.
“We’re big believers in the ongoing growth of Melbourne’s west and in particular the outlook for Sunshine. The property is well positioned to take advantage of a number of these strong thematics playing out,” he added.
This is the fourth transaction for ADPF1 which will result in 45% of the initial equity drawn to date. Assembly commenced operations in September 2019 raising $155 million for ADPF1 in its first close with a final target of $350 million.
