Diversified property trust GPT is looking to divest its Highpoint Homemaker Centre in Melbourne’s inner north west suburb of Maribyrnong with expectations of $80 million for the retail asset.
The Maribyrnong centre, which has traded for nearly 30 years, is fully leased and returns a net income of about $5 million annually.
Anchored by Spotlight, the single level 21,272sq m centre is the dominant furniture, bedding and homewares centre in Melbourne’s inner north-west located eight kilometres from the CBD, comprising 18 large format retail operators.
Across the country, Altis Property Partners offloaded nearly $300 million worth of large format retail assets in Queensland and New South Wales this month.
The $282.4 million sell down included Homemaker The Valley in Brisbane’s Fortitude Valley, acquired for $170 million by Arkadia Capital, and Homemaker Greenway and Greenway Plaza in Sydney snatched up by Aventus Property Group for $112.4 million.
The Maribyrnong centre is being brokered by CBRE’s Mark Wizel and Justin Dowers, along with Carl Molony and Lincoln Blackledge of Stonebridge.
Wizel said a low interest rate environment coupled with the attractiveness of large format retail yields had underpinned buyer interest despite the rising online retail trend.
“The sector has also shown a level of resilience to the impact of online retailing, with demand and spending at large format centres supported by population growth and high levels of residential construction in markets such as Victoria,” Wizel said.
“The strong economic performance of Victoria coupled with the record low cash rate of 1.5 per cent and improved consumer spending conditions coming into 2018, means investment demand for core retail investment assets will continue to be robust.”
Highpoint Homemaker Centre will be offered by expressions of interest closing October 25.