IOOF buys west Sydney homemaker centre

The Minchinbury asset includes bulky goods (5985 sqm), retail (3230 sqm) and a childcare centre.

IOOF is spending $68 million for the one month old Great Western Centre in Sydney’s west Minchinbury.

The 10,770 square metre bulky goods and retail investment at the south west corner of the Great Western Highway and Carlisle Avenue includes 27 retail tenancies – a small portion which is for lease – a childcare centre, gym and car wash.

The Great Western Centre opened last month.

Autobarn, BCF, Petbarn, SuperCheap Auto and Total Tools are amongst the major occupiers.

The 3.2 hectare site also includes a dining precinct built around a piazza and 322 car parks.

Brenex, led by father and son Frank and Anthony Carioti, was the builder and vendor.

Low yield, long leases

The off-market sale of 11 John Hines Avenue, was brokered by Colliers’ John McCann and Frank Oliveri at an initial 5.7 per cent yield (story continues below).

Excluding incentives, the return is 5.8pc.

The asset’s average lease duration is nine years.

Earlier this week Altis banked $46.25m selling the Lake Haven Homemaker Centre at Charmhaven, between Sydney and Newcastle, to Metro Diversified Property Fund.

Harvey Norman has snapped up two assets of this type this year – Watergardens Homeplace in Melbourne’s west Taylors Lakes, which cost $97m from QIC Property Fund and QIC Shopping Centre Fund, and, in Western Australia, the Geraldton Homemaker Centre, from Sentinel Property Group ($28.25m).

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Marc Pallisco

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