This article is from the Australian Property Journal archive
AFL footballer-turned-developer Andrew Welsh has sold off a Dan Murphy’s anchored retail centre in the Geelong growth corridor to the ASX-listed HomeCo Daily Needs REIT for $21.5 million.
Former Essendon star Welsh sold the 10,929 sqm Armstrong Creek site through his development company Wel.Co. Dan Murphy’s opened in November and represents the second stage of the $1 billion master-planned Armstrong Creek Town Centre. HomeCo acquired the first stage, a Coles-anchored neighbourhood shopping centre a year ago for $55.4 million.
Colliers’ Tim McIntosh and Mike Crittenden managed the off-market sale.
Welsh said there are another 10-plus stages to deliver within the Armstrong Creek Town Centre project.
“We are strong advocates of Armstrong Creek and the rapid population growth the area continues to experience,” said Paul Doherty, fund portfolio manager of HomeCo Daily Needs REIT.
“The 100% leased Dan Murphy’s anchored investment is a great compliment to our brand new Coles-anchored neighbourhood shopping centre also within the Armstrong Creek Town Centre.”
The acquisition forms part of a $222 million spending spree announced by the ASX-listed trust last year.
The sale is also the latest in a string of Dan Murphy’s deals nationally, as investors rush defensive retail covenants. More than $140 million of Dan Murphy’s assets have transacted across nine transactions in the streak, the equivalent value to the previous five years from 2015 to 2020.
“The Dan Murphy’s covenant is one of the most highly sought after in the retail investment market, with both institutional and private investors attracted to the continued strong performance, attractive lease tenure and underlying land value in prominent locations,” McIntosh said.
Recent Dan Murphy’s transactions have been struck in Dickson, in the ACT, on a yield of 4.25%, and in Bathurst in July for $11.2 million, showing 4.50%.
Dan Murphy’s owner Endeavour Group reported two-year sales growth up 18.4% and total sales of $5.7 billion in its interim results.
