Dubbo Homemaker Centre fetches $13.3m from fund manager

Centuria managed Primewest bought the Dubbo City Toyota dealership in 2020.

MPG Funds Management has swooped on the new Dubbo Homemaker Centre, 300 kilometres north west of Sydney.

The Amaroo Hotel sold for $22.5 million last July.

The 3796 square metre complex, fully let to three tenants – Fantastic Furniture, OMF and Total Tools – forms part of a master-planned commercial zone also with a Mobil service station, Endeavour childcare centre and Carl’s Jnr fast food restaurant.

The developer, Stevens Group, was the seller.

Colliers’ James Wilson and Ben Wilkinson were the agents.

Dubbo Homemaker Centre

With 71 car parks, the Dubbo Homemaker Centre, on 8163 sqm at 6 Hawthorn Street, near the corner of the Mitchell Highway, or Cobra St, is costing $13.277 million, reflecting a 5.75 per cent net passing yield.

Completed in December, the asset’s eastern boundary abuts a larger bulky goods complex, with a Godfreys, Spotlight and The Good Guys.

It is also walking distance to the Cobra Street Homemaker Centre, anchored to Barbecues Galore, Forty Winks and Harvey Norman.

The deal comes three years since Centuria managed Primewest outlaid $12.5m – reflecting a 6.5pc return – for the town’s Dubbo City Toyota and Lexus dealership.

Seven months ago, the town’s Amaroo Hotel sold for $22.5m – a region record pub price (story continues below).

MPG invests out of town again

MPG is an active out-of-town investor – it manages a trust targeting government backed or essential services assets in regional areas.

However the Dubbo property is earmarked for the Bulky Goods Retail REIT.

“Compared to our other property asset classes, we consider that the large format retail sector offers good value,” fund manager director Brett Gorman said.

“We are actively seeking to grow the trust with the addition of new large format properties in the range of $20-$50m,” he added.

The acquisition comes five months since the group, for its Essential Services Property Trust, outlaid $33.5m for four investments including in the Northern Territory, a youth training centre at Palmerston, near Darwin, and an office leased to the Department of Justice and Court Services Victoria in Shepparton, 165 kilometres north of Melbourne.

In 2021, for the same fund, MPG paid $6.7m for a Centrelink at Ballina, near Byron Bay.

The parent company – McMullin Group – late last year snapped up the ex-Warragul saleyards, 100km south east of Melbourne, with plans for a bulky goods complex.

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Marc Pallisco

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