IP Generation have settled on Stockland Glendale in a $315 million deal, the largest NSW sub-regional transaction in over 18 years.

Colliers Managing Director, Asia Pacific | Retail Capital Markets, Lachlan MacGillivray, secured the transaction on behalf of Stockland.

The centre is anchored by Kmart, Target, Coles, Woolworths and Event Cinemas, complemented by a desirable mix of 10 drawcard mini-majors including TK Maxx, Rebel Sport and JB Hi-Fi, 66 specialty and kiosk retailers and 11 pad sites.

“IP Generation is privileged to be acquiring this landmark, 19-hectare town centre in a catchment that it positioned for exceptional growth. This is the centre’s first change of ownership in the 30 years since its development, which speaks to how rarely these types of assets are traded. The compelling forecast returns and IP Generation’s track record has underpinned strong demand for this opportunity from our stable of investors. ,” Chief Executive Officer of IP Generation, Chris Lock said. 

“This landmark transaction of Stockland Glendale is a reflection of the incredible demand for assets that boast both scale and convenience, as well as a comprehensive offering of both discretionary and non-discretionary retailer categories,” Mr MacGillivray said. “Stockland Glendale is exceptionnally land rich and the site coverage ratio of 28.2 per cent offers leasing remixing and expansion potential.”

IP Generation’s continued investment into the retail sector is proof of the strong demand for dominant retail assets which provide attractive return profiles. They have made continued commitment to the sector with recent major acquisitions including Craigieburn Central (VIC) and a 50 per cent interest in Rockingham Centre (WA). 

“Our focus has been on taking advantage of unique investment opportunities within the market to acquire high quality, income producing assets with significant value-add potential,” Mr Lock said. 

“Many large corporations and fund investors such as IP Generation, are increasingly interested in and buying into the retail sector. The confidence they have shown is a testament to the current strength of the retail investment market. Complementing their purchase, a proposal has been lodged to develop the vacant land next to the centre with a residential/mixed-use focus, which will underpin future sales growth at the centre,” Mr MacGillivray said. 

Stockland Glendale was the first of the true super centre outdoor concepts combining retail, leisure and entertainment. Occupying a landmark 18.6-hectare site, it is the fourth largest retail land holding in NSW. The centre has extensive frontages to Stockland Drive and Lake Road, providing convenient access to the Newcastle CBD and surrounding suburbs.

IPG’s acquisition of Stockland Glendale marks the first time the asset has been traded since its development in 1996, having been subject to institutional ownership in the intervening period.

The centre boasts robust sales performance with annual sales reaching $366 million in February 2024, and strong sales productivity of $10,553/sqm. The centre attracts annual foot traffic of over 4.8 million, and customers spend an impressive $76 per visit on average. Stockland Glendale has been enhanced by the recently installed shade sail structure that provides covered parking and hosts weekly Farmers and Artisans Markets.

“The sub-regional sector continues to attract strong capital demand, fuelled by an appealing spread to the risk-free rate and borrowing costs. Private investors and syndicators looking for attractive income yields have emerged as the dominant players, providing an opportunity for institutional owners to recycle capital. We expect this trend to continue throughout the second half of 2024. ” 

The Colliers Retail Capital Markets team has been involved in a number of significant national transactions over the past 12 months, including Ashfield Mall that sold for $210 million, the largest NSW sub-regional transaction in over 15 years, Midland Gate Shopping Centre in WA for $465 million, the largest retail transaction nationally in two years, and Cairns Central for $390 million, the second largest transaction in 2023. 

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