Centennial, HMC trade ex-Masters outlet

The former Masters at North St Marys. Image: Google Street View.
Centennial last month purchased adjoining Willawong sites with plans for a business park

HMC Capital, the new name for HomeCo, has sold an ex-Masters store at North St Marys, after deciding against converting it to a major wellness centre and essential services complex.

It is banking $35.1 million – a 71 per cent premium to the June book value, it said – for the 3.1 hectare property, 243 Forrester Road, at the V-intersection with Ropes Crossing Boulevard.

Centennial Property Group is the buyer; the investment will be extended into a last mile logistics hub, the Central West Distribution Centre.

The property has also been rented to Chrisco Hampers on a short lease.

Upon settlement, the buyer will hold it in the KKR-backed CILP (or Industrial Logistics Portfolio) fund which is now closed out with 23 assets.

The pair in March launched the Build 2 Core Partnership Fund with a $650m mandate to chase investments with development upside.

Retail to wellness to warehousing

Abutting the St Marys Leagues Stadium, which neighbours the St Marys Leagues Club, 243 Forrester Road contains over 350 car parks.

The warehouse spreads just over 13,000 square metres.

HMC last year obtained a permit to replace the property with a multi-level health and wellness precinct, and a 138-place childcare centre, gym, vet hospital and shops.

That project also included a medical complex with a dentist, physiotherapist and imaging clinic.

“The purchase represented a compelling opportunity given its highly land constrained urban/industrial location within Sydney, that is being acquired with recently constructed improvements at, or below, land value in a market that has started to exhibit value post a genuine softening of capitalisation rates,” Centennial executive director and chief executive officer, Paul Ford, said (story continues below).

“The acquisition expands Centennial Industrial & Logistics [Partnership]’s $1 billion investment portfolio of 61 assets…with an additional development pipeline of c$450m,” he added.

North St Marys is about 47 kilometres west of Sydney.

Another investment with development upside

The landlords will now focus on growing the B2C fund, which holds three land-rich industrial asset.

The trust was seeded with two Brisbane investments – the Geebung Industrial Park, valued at $30m, and Stapylton Distribution Centre ($13m).

It Melbourne it owns the $39m Somerton Industrial Park.

Presently containing 38,000 sqm of product, the portfolio return $2.63m in annual rent.

When built out, they are expected to contain c70,000 sqm of lettable area and be worth a total of c$201m.

Colliers’ Gavin Bishop and Sean Thompson marketed 243 Forrester Rd.

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Marc Pallisco

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