Broadmeadows Homemaker Centre sells for $20m as investors pile into market
Broadmeadows Homemaker Centre recently sold for $20m.
Broadmeadows Homemaker Centre has sold for $20m just months after the sale of its adjacent shopping centre for nearly $135m.
Located just 15km northwest of the CBD, the homemaker centre sold to an undisclosed investor who will collect $1.4m a year in rent from the property.
CBRE’s James Douglas negotiated the sale and said it was “highly competitive” and believed the new buyers had plans to add value to the site over time, potentially through development.
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“It’s obviously a strategic major site on 3.5ha with huge car parks; and the development opportunities are quite good and quite broad,” Mr Douglas said.
The centre has a gross lettable area of 5631sq m and has a carpark that can accommodate 743 vehicles.
Harvey Norman, Dan Murphy’s and Bunnings Warehouse are separately owned but currently occupy the centre alongside other national and chain retailers paying a combined annual total of $1.4m in rent each year.
In June this year, Nikos Property Group purchased a 50 per cent interest in the neighbouring Broadmeadows Central for $134.5m — its second partnership with Vicinity Centres.
It makes the Broadmeadows Homemaker Centre the suburb’s fifth priciest property ever sold.
Mr Douglas added that both properties were “really big sites” that offered retail, residential or mixed use opportunities that appealed to a wide range of investors today.
The homemaker centre sits on 3.4ha.
“It’s a significant land bank with an immediate cash flow,” he said.
“And it’s a really tightly held market, there aren’t many of them. They’re not on every corner.”
CBRE reported a record low national vacancy rate of 3.5 per cent for large format retailers in the 2022-2023 financial year, compared to 5.2 per cent in 2021-2022, suggesting a growing demand for the property class.
While the buyer of the homemaker centre was undisclosed, Mr Douglas said major players owning other similar sites in Victoria included HMC Capital, LaSalle Investment Management, and Gerry Harvey of Harvey Norman.
As of May, there were 319 similar centres in Australia spanning a combined 534.5ha.
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