HMC buys unique inner-city mall
One of three triple-supermarket anchored neighbourhood shopping centres in Queensland – and 11 in the country – has found favour with fund manager HMC Capital.
Market Central Lutwyche, covering an affluent catchment five kilometres north of Brisbane’s CBD, is trading for $119.35 million following an expressions of interest campaign closing in June.
The sellers were Abacus Group and ISPT, each controlling half.
The result comes in a touch above the ($120m) June, 2024, valuation, which assumed a 6.5 per cent capitalisation rate.
Based on the estimated fully let net income, the yield is eight per cent.
Abacus and Zenonos Group acquired it from Federation Centres for $65m in 2015, when there was about 15pc less lettable area.
Stonebridge’s Carl Molony, Philip Gartland and Justin Dowers with JLL’s Nick Willis and Sam Hatcher brokered the latest deal.
New owner for 50th
Opened in 1974 and renovated numerous times since – the last in 2019 at a cost of $77m – Market Central Lutwyche’s catchment covers about 74,000 people (story continues below).
More than a third earn over the Greater Brisbane average.
As well as the supermarket spaces – leased to Aldi, Coles and Woolworths – there are two mini-majors, 29 specialty stores and 10 kiosks.
Adding 14 office tenancies, the lettable area is 22,106 square metres, serviced by 760 underground car parks – some which could be set aside and leased to a private operator for additional income.
The last renovation added the Woolworths tenancy and a medical precinct – about 3200 sqm.
The 2.15 hectares Mixed Use zoned site, 543 Lutwyche Road, offers development upside, with up to 12 levels able to be considered
Nearly 51,000 vehicles pass a day, according to the agents.
The deal comes a week since we reported HMC – formerly known as HomeCo – paid $107.5m for the Brandon Park Shopping Centre, in Melbourne’s Ferntree Gully, for the Last Mile Logistics Trust, which still has some $500m to deploy.
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