HMC buys Melton shopping centre
HMC Capital has bought a Woolworths-anchored shopping centre in Melbourne’s west for $49 million, less than 18 months after the property changed hands as part of a $440.5 million portfolio.
The deal for Coburns Central at Melton West reflects a 5.5 per cent initial yield.
Thirteen offers came in following an expressions-of-interest campaign, at prices reflecting a sub six pc return, the agents said.
The Lowy family’s Assembly Funds Management and PGIM Real Estate were the sellers.
The partnership agreed to acquire the complex last March as part of a collection also with the neighbouring Woodgrove Shopping Centre, a medical complex and development site.
QIC was that vendor.
It acquired Coburns Central from Adelaide-based private investor Nick DiMauro for $26m in 2015.
HMC will hold it for an unlisted fund.
Coburns Central
On 2.03 hectares at 523-531 High Street, on the south-west corner of Coburns Road, Coburns Central contains 6845 square metres of lettable area (continues below).
The supermarket pays percentage rent.
There are also 13 specialty stores the agents said are leased at about a third below the market rate, a mini-major and 349 car parks.
Two pad sites are occupied by an Ampol and Hungry Jack’s.
“There remains significant liquidity for tightly held neighbourhood assets, and the transaction delivers a solid outcome for our investors in ADPF1 and 2, and the AWT, alongside our institutional partners. The result reinforces our conviction in acquiring strategically located retail centres that can benefit from our brand of intensive asset,” AFM chief investment officer, Tim Meurer, said.
PGIM head of Australian real estate, Steve Bulloch, added “the successful sale of Coburns…reinforces our strategy to acquire high-quality assets with strong in-place income but also with significant potential to create additional value through active management”.
JLL’s Stuart Taylor, Tom Noonan and Nick Willis with Stonebridge Property Group’s Justin Dowers, Carl Molony and Kevin Tong were the agents.
Assembly and PGIM retain Woodgrove Shopping Centre with 53,372 sqm on c25ha with over 2000 car parks. The block near Barries Rd is immediately developable.
Melton West is about 35 kilometres from the CBD.
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