Burwood One shopping centre sold for more than $180 million.
An international investor has splashed more the $180 million on the Burwood One shopping centre.
The Burwood East complex on the prominent corner of Burwood Hwy and Blackburn Rd was snapped up by a Melbourne-based buyer from Hong Kong.
Owned by the Hansky family for 26 years, the shopping centre is home to Australia’s oldest Kmart store which opened in 1969.
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The site at 172-210 Burwood Hwy is home to Australia’s oldest Kmart
The 58,780sq m site had been expected to fetch up to $200 million.
CBRE national director Mark Wizel said the mega deal was a record for a suburban shopping centre, when the income it generated was stacked up against its sale price.
“The buyer that has acquired Burwood One did so accepting a return of about 5 per cent annually,” he said.
“The return is the lowest ever recorded for a shopping centre of a subregional nature.”
The site also includes a Coles.
Mr Wizel said this meant the buyer had paid top dollar for the shopping centre, which they saw as a “generational investment”.
CBRE state director for Victorian retail investments Justin Dowers said it was also a record sale for a shopping centre in Australia owned by just one family.
The shopping centre had an estimated net income of more than $9.5 million a year and a zero vacancy rate.
Australia’s first Kmart store in Burwood East in 1969.
Inside the Burwood East Kmart in 1969.
CBRE said the centre had the strongest trading Kmart and Coles combination in Australia, with the retail giants signed to 21- and 20-year leases respectively.
The popular complex also includes Coles and Aldi supermarkets, a First Choice Liquor outlet, specialty stores and a gym.
Mr Wizel said he was blown away by the interest the shopping centre attracted during the sales campaign.
“Those at the pointy end of the process included Australian-based institutions as well as several private buyers who sourced their capital out of Asia,” he said.
The complex first hit the market in July and secured a sale last week during the second round of the international expressions of interest process.
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