QIC Offloads Melbourne Homeplace Centre for $97m


QIC Global Real Estate has sold its Watergardens Homeplace retail centre in Victoria for $97 million.

Retailer Harvey Norman is the new owner of the large format retail asset, which attracted a large range of investors, and sold on an initial yield of 4.75 per cent.

The large format retail sector has remained appealing thanks to its growth during the pandemic.

The Homplace retail centre is co-located with Watergardens shopping centre in Taylors Lakes, 27km northwest of the Melbourne CBD.

The divestment comes after QIC’s sale of the Robina Gold Coast retail centre to Primewest last week for $66 million.

QIC Global Real Estate managing director Michael O’Brien said the divestment of these sites, jointly held by the QIC Property Fund and the QIC Shopping Centre Fund, was in line with client-endorsed strategies for both funds.

“As non-core holdings, these assets don’t form part of QICGRE's broader masterplans for Robina Town Centre and Watergardens, and the adjoining strategic land parcels owned by the funds,” O’Brien said in a statement.

“Both assets generated strong buyer interest and were sold at a significant premium to book value.”

▲ The Robina Home and Life complex on the Gold Coast was developed and sold by QIC’s real estate arm to Primewest for $66 million.
▲ The Robina Home and Life complex on the Gold Coast was developed and sold by QIC’s real estate arm to Primewest for $66 million.

Colliers’ Lachlan MacGillivray, who managed the sale of Watergardens Homeplace, said the result achieved represented the lowest yield recorded for a large format retail centre of this size.

“Watergardens Homeplace attracted unprecedented levels of interest with a record number of enquiries and bidders ... nationally and overseas,” he said.

“This campaign highlights the pent-up demand for dominant, well located trophy assets such as Watergardens Homeplace.”

The major retail precinct spans a 7ha site anchored by Bunnings, Harvey Norman, six national large-format tenants and two national restaurant sites.

The property, at 430 Melton Highway, has a total gross leasable area of 25,931sq m and 827 parking spaces.

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