Altis banks $46m from homemaker centre

The 14 year old Lake Haven Homemaker Centre (middle) neighbours the 38,000 sqm Lake Haven Shopping Centre (left).

Altis Property Group is banking $46.25 million from a regional bulky goods investment.

The Lake Haven Homemaker Centre at Charmhaven, between Sydney and Newcastle, is trading to Metro Diversified Property Management.

Altis sold Homemaker The Valley for $170m in 2018.

On 5.3 hectares at 53 Lake Haven Drive, at the north east corner of Pacific Highway, the asset contains 21,788 square metres of gross lettable area; tenants include Autobarn, Barbecues Galore, BCF, Beacon Lighting, Harvey Norman and Repco.

Part of the complex was recently vacated by Bunnings.

Altis paid $40.5m in 2014; the disposal marks its exit from the Large Format Retail sector.

JLL’s Nick Willis and Sam Hatcher were the agents.

Exit from Large Format Retail

Altis announced in 2018 it would quit Large Format Retail to focus on industrial and logistics product.

Shortly after, the manager offloaded Homemaker The Valley, in Brisbane’s Fortitude Valley, to Arkadia for $170m – a price which reflected a 7.3 per cent yield.

It also divested Sydney’s Greenway Plaza and Homemaker Greenway for $112.4m.

That buyer was Brent Blundy’s Aventus Property Group (story continues below).

Two years ago, Altis sold another investment of this type in the New South Wales Capital, Homemaker Prospect, for c$65 million.

That deal, with Dexus, reflected a circa seven pc return.

Metro builds retail portfolio

In 2019, Metro paid Intergen Property Partners $47.5m for Blaxland Home Centre in Campbelltown – about 55 kilometres south west of Sydney.

Earlier this year, the group paid Professional & Industrial Alliance Pty Ltd, which is directed by Gold Coast Titans co-owner Darryl Kelly.

Metro is held by Garry Allan Carter.

Mr Willis, who declined to comment about the Lake Haven deal, said the Large Format Retail sector has evolved over the past decade, with investors attracted to the risk adjusted returns it offers in comparison to other retail sub-sectors.

“The investor demand in recent years has been further enhanced by the sectors’ retailer performance, rent collection reported throughout COVID-19 and value add potential through the land rich nature of these assets,” according to the executive.

“It is evident through a recent sales campaign for LFR assets the increased volumes of maiden capital now looking to deploy into the sector,” Mr Hatcher added.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.