Melbourne fund manager scoops up NSW mall

Stockland developed the Glendale shopping centre from 1996.

Stockland is selling Chris Lock’s IP Generation a regional New South Wales shopping centre it developed 28 years ago.

Blackfox just bought a Shepparton property for a fund seeking investors.

Worth a speculated $315 million, the outlay for Stockland Glendale, 13 kilometres west of Newcastle, would be the biggest outlay yet for the Melbourne fund manager.

A Masters converted homemaker centre at Bathurst sold this month.

However, it will represent a modest loss for the seller which valued the mall at $320m, reflecting a 6.25 per cent capitalisation rate, at June 30, 2023.

The year before, it was appraised at c$342m.

The disposal, reflecting a c7.5 per cent passing yield according to sources, comes two months since Stockland sold a Nowra shopping centre, 160kms west of Sydney, to Fawkner Property, which like IP Generation, is Melbourne based.

Stockland has also in recent years sold Fawkner Queensland malls at Gladstone, for $139m, and Cairns ($146m).

Stockland Glendale

On 19.4 hectares at 387 Lake Road, near the corner of Main, Stockland Glendale contains 52,403 square metres with five anchors: Coles, Event Cinemas, Kmart, Target and Woolworths.

There are 11 mini-majors too occupied by, amongst others, Cotton On, JB Hi Fi, Rebel Sport and TK Maxx, 66 specialty stores and 2289 car parks.

On average, according to the outgoing landlord, every visitor spends $77 a visit.

IP Generation would compete for tenant clients with SCA Capital – which in mid-2021 bought Newcastle’s Marketown for $150m and Marketplace Raymond Terrace, 26km north of the town centre (story continues below).

Last October meanwhile, Fawkner picked up Port Macquarie’s biggest shopping centre, Settlement City, 240km north of Glendale, from Lendlease, for $107m.

CBRE’s Simon Rooney and James Douglas with JLL’s Nick Willis and Sam Hatcher were the agents.

IP Generation keeps spending

IP Generation will hold the Glendale shopping centre, previously known as the Super Centre Glendale, in a single asset unlisted trust now calling on investors promising a nine per cent annual distribution paid monthly.

The acquisition comes three weeks since we reported the fund manager was seeking to buy a half stake in Adelaide’s Tea Tree Plaza – again for a trust seeking backers – from Dexus for c$308m.

Last April meanwhile, IP Generation paid Lendlease c$300m – a then record company outlay for an asset – for Craigieburn Central, north of Melbourne.

Mr Lock has also in recent years divested major properties including two in the coastal Victorian town of Torquay.

In a particularly interesting deal, 18 months ago, the manager sold a Coles anchored shopping centre at Miranda, west of Sydney, to rival Woolworths, which is longer term expected to boot it out and move in.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of