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Melbourne’s Burwood One for sale

Burwood East in Melbourne's  heart
Burwood East in Melbourne's heart

A Melbourne family has put its Burwood One sub-regional shopping centre on the market which has potential to be one of the biggest single retail asset sales of the year.

Shopping centre sales have reached in excess of half a billion dollars this year in Victoria. The impending sale of Burwood One continues the flurry of activity in the retail sector since March with more than $270 million dollars in sales – at an average yield of 4.82%. Other sales, include the Leopold Gateway centre which was sold for $117 million.

CBRE National Director Investments, Mark Wizel, who is managing the sale process, said it was difficult to put a price on an asset which was certain to attract a wide range of buyers both local and off-shore. Given its size, location, tenancy profile and growth potential – both in terms of its current guise and future site development potential – this is the sort of asset which will attract a very strong field of buyers and that competition could drive a yield not seen before for an asset of its kind,’’ he said.

Situated on a 58,780m2 site at 172-210 Burwood Highway, Burwood East, the two level, 26,598m2 (GLA) centre, is anchored by Coles, Kmart, and Aldi,  complemented by six mini-majors and 51 specialty shops.

Both Coles and Kmart are 24 hour stores, while Aldi has a ten year lease. The centre will be sold with an estimated net income exceeding $9.5 million per annum and a vacancy rate of zero.

Positioned on the corner of Blackburn Road and Burwood Highway,the centre also offers excellent customer access to almost 1000 car spaces.

Wizel said the centre had many exceptional attributes,  including its location in the heart of Melbourne, 14 kilometres east of the Melbourne CBD,.

“That sort of catchment has underpinned the success of the centre’s tenants, including Coles, KMart, Aldi, et al, whose combined drawing power has in turn, arguably driven the success of numerous  high density residential developments in the vicinity and so further enhancing the catchment and securing its position into the future,’’ said Wizel.  .

Local municipality, the City of Whitehorse has a current forecast population of 176,554 which is forecast to grow to 207,424 by 2036.

 

 

 

 

 

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Shopping Centre News

Shopping Centre News is the leading publication for the shopping centre industry in Australia and New Zealand.

SCN is one of the most authoritative publications in the world for the shopping centre industry. Each issue contains articles on Design, Legal issues, Marketing, Leasing, Centre Management and Development. It features contributions by industry experts from around the globe. Shopping Centre News is the only publication in the world that features centre statistics on Turnover, Turnover per square meter and Specialty Shop turnover per square meter for every major centre in Australia.

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