This article is from the Australian Property Journal archive
HMC Capital has expanded its HomeCo Last Mile Retail Logistics (LML) Fund, picking up Brandon Park Shopping Centre in Melbourne’s south-east for $107 million from Chris Langford’s Newmark Capital.
Situated in Wheelers Hill, about 19 kilometres from the Melbourne CBD and two kilometres from Monash University, the asset encompasses 5.81 hectares of land in with a retail centre anchored by Coles and Aldi.
Brandon Park was acquired by Newmark Capital in 2017 for $135 million, with development approval obtained in 2022 to add further medical, retail, commercial and residential usages across the site, which is designated as a major activity centre under planning controls.
It currently offers a gross lettable area of 23,038 sqm, reflecting a low site coverage of 40%, also comprising five mini-majors and 86 specialty tenancies and kiosks.
The location provides a main trade area of 85,870 residents and a local workforce of 6,000 within a one kilometre radius.
CBRE’s Simon Rooney, James Douglas and David Minty and JLL’s Stuart Taylor, Nick Willis & Jesse Radisich were the selling agents.
“The sub-regional sector continues to receive very strong demand, particularly those in metropolitan locations, driven by ability to achieve appealing yield spread to the risk-free rate and opportunities to drive enhance via under-utilised land. Low volumes of retail transactions YTD, particularly in Victoria, is a result of a supply-demand imbalance, with participation levels in Brandon Park demonstrating the depth of investor appetite,” Taylor said.
“The Brandon Park campaign generated interest from a large cross-section of buyers, notably from several new entrant private capital sources, who are increasingly looking to the retail sector as one of the value plays of the current cycle.
“Discerning investors are seeing enormous opportunity in Melbourne shopping centres, understanding that such assets can provide attractive risk adjusted returns, underpinned by a surging population and constrained supply,” Taylor added.
“The offered attracted keen interest from a wide range of investors given its metropolitan Melbourne location coupled with the opportunity to enhance the retail offering via strategic repositioning,” Rooney said.
“The site also offers future potential for a large scale, mixed-use development opportunity subject to the relevant planning approvals. Shopping centres are increasingly evolving into multi-dimensional precincts, with Brandon Park providing the ideal platform to deliver a future project of scale and flexibility.”
LML is an unlisted wholesale fund focused on essential daily needs properties with growth upside. It was seeded with the circa $150 million purchase of Menai Marketplace in Sydney’s south-west at the end of 2022.
Meanwhile, HMC’s HomeCo Daily Needs REIT has divested a Ballarat large-format retail asset for $54 million.
The fully occupied North Wendouree asset at 333 Gillies Street is almost entirely leased to national tenants, which include Spotlight, Super Cheap Auto, PetBarn, Fantastic Furniture, Anaconda, and BCF.
