HMC Capital – the new name for HomeCo – has purchased two of three shopping centres listed by Lendlease in July.
In Sydney’s south west, the buyer is outlaying $150 million for Menai Marketplace.
With an attractive client base – its visitors’ household income is over 20 per cent the national average – the centre also offers significant development upside, with buildings covering a third of the 2.19 hectare block and a short Weighted Average Lease Expiry.
HMC is planning to reposition, adding daily needs tenancies.
The property will seed the Woolworths-backed Last Mile Logistics (LML) fund – set to launch next year with a $500m portfolio and grow to $1 billion before closing in 2030.
Meanwhile, HMC – for the HomeCo Daily Needs REIT – is paying $92.5m for Southlands Boulevarde, at Willetton, 15 kilometres south of Perth.
On 6.15ha, it contains a gross lettable area of 22,401 sqm, with 54 specialty stores and 1250 car parks.
When Aldi opens next year, it will become one of 10 Australian triple supermarket anchored centres with no discount department store, the buyer said.
Also with a Hoyts cinema, occupancy is 96pc, with a 5.9 year WALE.
Buildings cover 39pc of the parcel.
“The assets are high performing, convenience-based sub-regional centres with a strong non-discretionary focus,” a Lendlease statement said (story continues below).
“There was strong interest in the portfolio from an active buyer pool that was attracted to the assets having some of the most productive sales performance across the country and a dominant market position in their community,” it added.
“In addition, Menai Marketplace is located in one of the most tightly held catchments in Sydney and anchored by one of the best performing Woolworths supermarkets in the country,” according to the group.
Then there was one
Lendlease listed the assets, along with Port Macquarie’s Settlement City, to wind down the Sub Regional Retail Fund (LLSRF).
A fund manager is speculated to be in discussions for that mall, for c$105m.
CBRE’s Simon Rooney and James Douglas with JLL’s Nick Willis and Sam Hatcher were the agents.
“The sale of these [two] assets is a strong outcome for our investors,” Lendlease Investment Management head of Mandates, and formerly the company’s Retail and Logistics arm, Matt Bowyer, said.
“Sub-regional retail assets offering this type of essential convenience continues to perform well, supporting positive investor sentiment towards the sub-sector,” he added.
“The outlook for retail remains positive, with continued confidence in the sector experienced by strong sales often exceeding pre-COVID levels over the year,” according to the executive.
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