Burwood One closes in on $200m sale
Burwood One shopping centre’s sale is imminent, with an eye-watering figure close to $200 million tipped to seal the deal.
Agents have been fielding offers from around the globe for the popular retail complex, home to Australia’s oldest Kmart store.
The Burwood East complex, on the prominent corner of Burwood Highway and Blackburn Rd, has been owned by the Hansky family for 26 years.
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It hit the market in July, with an international expressions of interest campaign closing on September 20.
CBRE national investments director Mark Wizel says he has been blown away by the interest in the 58,780sqm site at 172-210 Burwood Highway.
“We’ve had interest from local, interstate and overseas investors,” he says.
“They see the incredibly strong performance of the shopping centre, coupled with the enormous future potential of the property.
“It has an underlying land holding of close to 6ha.”
Kmart has traded at the site since 1969. The shopping centre also includes Coles and Aldi supermarkets, a First Choice Liquor outlet, specialty stores and a gym.
CBRE says the centre has the strongest trading Kmart and Coles combination in Australia, with the retail giants signed to 21- and 20-year leases respectively.
The shopping centre has an estimated net income of more than $9.5 million a year and a zero vacancy rate.
The Hansky’s bought the shopping centre in 1993 and extended it four years later. It was extended again and renamed Burwood One in $50 million refurbishment in 2010.
Wizel earlier told Leader that he expected Burwood One to attract a very strong field of buyers.
“Given Burwood One’s size, location, tenancy profile and growth 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.
The sale is expected to be inked in the next few weeks.
This article from Leader Newspapers originally appeared as “Sale of Burwood One shopping centre, including Australia’s oldest Kmart store, could be imminent”.