Thursday, June 13, 2024

Newmark Capital’s Brandon Park Shopping Centre sale by JLL and CBRE 

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A 100% interest in Brandon Park Shopping Centre in Melbourne’s established south-east is being offered for sale by Newmark Capital in response to strong investor interest.

CBRE’s Simon Rooney, James Douglas and David Minty, together with JLL’s Stuart Taylor, Nick Willis and Jesse Radisich are managing the sale of the metropolitan retail and mixed-used investment opportunity, which offers significant development potential.

Newmark Capital acquired the centre in 2017 and obtained development approval in 2022 to add further medical, retail, commercial and residential usages across the site, which is designated as a ‘Major Activity Centre’ under planning controls.

Newmark Managing Director, Chris Langford commented, “Brandon Park is a significant retail asset in the landscape of Melbourne, encompassing 5.81 hectares of land with a retail centre anchored by Coles and Aldi. The sale offers a unique opportunity to enhance the retail centre via re-positioning combined with large scale mixed-use development.”

Brandon Park Shopping Centre currently offers a gross lettable area of 23,038sqm,reflecting a low site coverage of 40%. In addition to the supermarket anchors, the centre offers five mini-majors and 86 specialty tenancies and kiosks.

CBRE’s Mr Rooney said, “We expect Brandon Park to attract strong domestic and offshore investor interest, as metropolitan Melbourne investment opportunities offering the scale of Brandon Park, value enhancing opportunities and an approved development application in place are rarely offered to the market.”

JLL’s Mr Taylor added, “The asset provides an extraordinary opportunity for both traditional retail investors and mixed-use capital to secure a major island site in Melbourne’s prized south-eastern suburbs, which is underpinned by strong retail fundamentals whilst providing exceptional value-add and development optionality.”

Situated in Wheelers Hill, approximately 19km south-east of the Melbourne CBD and 2km from Monash University, the centre provides convenient access to major arterial roads and broader Melbourne from its corner location on Springvale Road and Ferntree Gully Road.

The asset is strategically positioned to Melbourne’s workforce, adjacent to Victoria’s largest employment hub outside of the CBD, the Monash National Employment and Innovation Cluster (NEIC). The location provides a robust main trade area of 85,870 residents and a local workforce of 6,000 within a 1km radius driving retail performance, while creating demographics and demand drivers supportive of mixed-use development.

Mr Rooney noted that shopping centres were evolving into multi-dimensional precincts and re-defining what was once a destination for entertainment, hospitality, leisure and retail to a fully integrated ‘living sector’ with the introduction of residential, serviced apartment and hotel offerings.

“We are already seeing this evolution firsthand in Melbourne’s south-east, with Golden Age having developed 536 apartments across three residential towers developed within the air space above The Glen Shopping Centre,” Mr Rooney said.

“Brandon Park already offers a range of experiences, and now provides the ideal platform to deliver a future value-add project of scale and flexibility.”

Additional retail assets for sale or sold:

Coles anchored freestanding Coles supermarket Essendon for sale by Stonebridge | Commo.

Standalone supermarket Coles Bentleigh for sale by Gross Waddell ICR | Commo.

Sharp yield for Victorian Woolworths- anchored neighbourhood shopping centre sold by Colliers & Stonebridge  | Commo.

 

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