American private equity giant Blackstone has put its Brimbank Shopping Centre in Melbourne’s north-west on the market as part of a sell-down of its multibillion-dollar retail property portfolio.
The 37,576-square-metre sub-regional mall on a near 11-hectare site in Deer Park was one of 11 malls Blackstone tried to sell as part a $4 billion portfolio offering in 2017.
When the portfolio offering stalled last year amid negative sentiment about retail property, Blackstone, pulled it from the market and started selling its malls individually.
In December, it sold the Figtree Grove shopping centre in Wollongong for $206 million to Singapore’s SPH REIT and minority investment partner Moelis Australia on a yield of 6 per cent after selling Melbourne’s Waverley Gardens shopping centre for $178 million to a new fund set up by Elanor Investors Group with Heitman.
Brimbank Shopping Centre, which is situated 18 kilometres north-west of the Melbourne CBD, is being marketed with $170 million-plus hopes.
CBRE’s Mark Wizel, Justin Dowers and Trent Weir have been appointed to handle the sale, but declined to comment.
The mall is anchored by Coles, Woolworths, Aldi and Target stores alongside 91 speciality retailers, seven pad sites and more than 1600 car parking spaces.
It brings in annual net income of $12.3 million, which would equate to a yield of 7.26 per cent at an asking price of $170 million.
The last major sub-regional mall sale in Melbourne was Burwood One in Melborne’s East, which was bought by a private Hong Kong investor for $181.5 million on a 5 per cent yield in October last year.
Brimbank Shopping Centre was acquired by Blackstone in mid-2016 from ASX-listed Vicinity Centres as part of a $613.3 million acquisition of three malls including Clifford Gardens Shopping Centre in Toowoomba and Forest Hill Chase Shopping Centre in Melbourne’s Eastern suburbs.
The mall occupies just 34 per cent of its site, providing an opportunity for future development – a differentiating feature that could add to its appeal at a time when more than $6.3 billion worth of malls are up for sale including offerings from Stockland, Vicinity and GPT.
In August last year, Blackstone sold the Artarmon homemaker centre Home HQ in Sydney’s north shore for $140 million to BlackRock and Fortius.
Blackstone’s $700 million Top Ryde City Shopping Centre is currently up for grabs.
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