Kinglake sells Melbourne homemaker centre to neighbour
Kinglake has flipped a fully-let Melbourne growth corridor homemaker centre after almost exactly two years.
The asset manager banked $25.2 million for the Sunbury Lifestyle Centre at 85 Vineyard Road.
It paid $19.6 million in October, 2024.
That result reflected a six per cent net passing yield.
The on sale was struck at a 5.24 per cent return.
BWP Trust, owner of Bunnings asset including the outlet next door at 95 Vineyard Rd, is the buyer.
With the purchase, it now controls 4.8 hectares, separated by McDougall Rd.
The ASX-listed group is one of Australia’s largest Bunnings owners.
The deal comes a month since we reported Kinglake outlaid $6.7m for a largely vacant Coles-turned-retail investment in Wonthaggi.
Sunbury Lifestyle Centre
On 1.21ha on the north-east corner of McDougall Rd, in the suburb’s large format retail precinct, 85 Vineyard Rd services a catchment of 70,000 (continues below).
More than 22,000 vehicles pass it a day.
It contains 5554 square metres – major occupiers include The Good Guys, Repco, Total Tools and Petstock – and 143 car parks.
The agents said the rental agreements have fixed and CPI-linked rent rises.
There is significant rental reversion potential at review time, they added, with a 35pc gap in some cases between actual and market rents.
The Good Guys recently renewed – a move which will lift its rent from $476,000 to $550,000 in April, 2027.
85 Vineyard Road
Thirteen offers came in for the Sunbury asset following the close of an expressions-of-interest campaign in June, according to the marketing agents, Colliers’ Tim McIntosh and Will Heffernan with Stonebridge Property Group’s Rorey James, Justin Dowers and Kevin Tong.
Suitors included local and interstate investors, syndicates and institutions.
Sunbury, about 38 kilometres north-west of Melbourne’s CBD, forms part of the City of Hume, where population is forecast to grow 44pc by 2046, the agents said.
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