Burwood One Shopping Centre changes hands in $210 million deal
One of Melbourne’s most recognisable retail destinations, which is also home to Australia’s first Kmart (opened in 1969), has been sold in an off-market expressions of interest campaign for $210 million.
Burwood One Shopping Centre is a 58,800-square-metre property located 17 kilometres east of the CBD and has been the hub for local shoppers for 56 years. It was recently acquired by Charter Hall’s new convenience retail fund.
The sale, managed by Stonebridge Property Group, has placed the centre among a small pool of sub-regional assets that have traded for more than $200 million nationally in recent years.
Positioned on a major corner of Burwood Highway and Blackburn Road, the centre occupies a Commercial 1 zoned landholding with proximity to Deakin University and the future Suburban Rail Loop East. Its tenant mix includes Australia’s only 24-hour Coles supermarket, a 24/7 Kmart, an ALDI, seven mini-majors and around 40 specialty stores.
Stonebridge national partner Justin Dowers says the depth of buyer interest reaffirms how rare these large-scale assets are in the Melbourne market.
“Burwood One is one of Australia’s highest-performing sub-regional assets, and opportunities of this scale simply don’t come up often,” he says.
“The level of engagement from qualified capital highlights the appetite for centres with long-term growth potential, especially those focused on essential retail.”
The sale also reflects a broader upswing in retail investment. According to Stonebridge, national retail transaction volumes have exceeded $9 billion so far this year, which is up 20 per cent on the same period last year, marking the second-highest activity level in over a decade.
“The increased capital flow into retail is being driven by an understanding from investors that strong population growth, combined with a constrained supply pipeline, will drive rental growth moving forward,” Downers says.
Stonebridge partner Kevin Tong says the sale by Burwood One’s vendor forms part of a shifting trend among Asian groups who bought Australian retail assets between 2015 and 2020.
“We’re seeing many of these investors recycle capital – either moving into similar convenience-focused centres or transitioning into assets that better align with their evolving mandates,” he says. “It’s a sign of both confidence and maturity as offshore capital continues to refine its position in the Australian market.
“Recent examples of this trend include Pakington Strand Shopping Centre, acquired in 2016 and sold in 2024, and Arena Shopping Centre, purchased in 2017 and sold in 2023, further evidence of Asian investors reshaping and realigning their portfolios as the market evolves.”
