HMC Capital has announced two shopping centre acquisitions from LendLease’s Sub-Regional Retail Fund in deals totalling $242.5 million, Southland Boulevarde in Perth for $92.5million and Menai Marketplace in Sydney for $150m. 

This represents Australia’s largest sub-regional retail portfolio transaction since 2018, with significant investor interest generated both on a portfolio and individual asset basis. It highlights the continued investor focus on sub-regional shopping centres with over $775 million in assets transacted year to date.

CBRE’s Simon Rooney and James Douglas and JLL’s Nick Willis and Sam Hatcher negotiated the deal on behalf of Lendlease. 

CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney said, "A combination of investor focus shifting to convenience retail and the high-profile nature of the portfolio, generated significant enquiry, genuine buyer interest and competitive bidding, with HMC Capital’s acquisition set to instil further confidence in Australia’s retail investment sector. Despite the increased cost of debt following the RBA’s tightening of monetary policy, retail spending has remained resilient at 17.9% growth to September 2022, while capital remains robust for quality, strong performing, non-discretionary focused shopping centres.”

Nick Willis said, “Overall transaction volumes year to date are significantly down on the record 2021 volumes that reached over $13 billion. With the sale of Caneland Central announced yesterday and both these assets, total volumes are expected to reach $6 billion showing over a 50% decline in transactions. However, the sub-regional sector has attracted the greatest weight of capital. This demand for the sub-sector has been evidenced by the sheer transaction volumes with 14 sub-regional transacting, totalling approx. $1.64 billion and 5% above the 5-year average."

Sam Hatcher said, “The sub-regional investment market emerged post covid as the powerhouse sub-sector of the retail investment market – the land rich nature of these centres, diverse income profiles and dominance within their trade areas continue to attract a deep and diverse buyer pool.”

Menai Marketplace is an established and dominant centre within a densely populated and highly affluent trade area of some 164,000 people2. Located approximately 30 kilometres south-west of the Sydney CBD, it is the only sub-regional centre within its trade area and enjoys limited competition.  

Southlands Boulevarde is located approximately 12 kilometres south of the Perth CBD. The asset has a strong local convenience offer and is the largest centre in its trade area of over 84,000 people. The centre will become one of only 10 triple supermarket anchored centres with no DDS nationally when ALDI opens (anticipated in early 2023).

To request a sales analysis please contact either of the selling agent via the below contact details. 

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