Charter Hall lines up another triple supermarket anchored mall
Charter Hall is buying the landmark Burwood One shopping centre – the home of Australia’s first Kmart, opened 1969.
For a recently launched convenience retail fund, the asset manager is paying $210 million for the c26,600 square metre complex, on 5.9 hectares zoned Commercial 1 at the south east corner of Burwood Highway and Blackburn Road, Burwood East.
The seller, a Hong Kong based private investor, paid $181.5m in late 2018.
That vendor, late husband and wife, Jack and Paula Hansky, held 26 years.
They also undertook a $50m revamp and extension in 2010.
Burwood One
Burwood One at 172-210 Burwood Hwy is one of 11 national shopping centres anchored to Aldi, Coles and Woolworths.
The property also includes a gym and some 1000 car parks, 600 undercover.
In 2023, an application was lodged to add a dining and entertainment precinct to the western edge – at an estimated $20m cost.
The off-market sale is being managed by Stonebridge Property Group’s Justin Dowers, Kevin Tong and Carl Molony.
At c$210m, Charter Hall would be buying it at a c5.5 per cent net passing yield.
The 2018 deal reflected a 5.1pc return.
CRF chases triple supermaket anchored malls
Burwood One is expected to be held by the Charter Hall Convenience Retail Fund, created August and already with product worth c$1.4 billion.
The management mandate has been put at $2.5b however, given the success of an initial capital raise, the trust could control more.
The deal comes a month since we reported the asset manager outlaid $145m for Chullora Marketplace.
Triple supermarket anchored too, that deal was with Henroth Investments, at a 5.5pc net passing yield.
Also in September for the trust, Charter Hall bought three Bunnings warehouses – in Brisbane’s Oxenford, the Southern Highlands’ Mittagong and Thomastown, in Melbourne.
In April meanwhile, the fund manager entered an agreement with Elanor Investors Group, for Waverley Gardens.
On over 10ha in Melbourne’s Mulgrave, that asset is also triple supermarket anchored.
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