Australia’s first Kmart to sell as part of $200m Burwood One offering

Burwood One shopping centre could fetch up to $200 million when its family owners hand over the keys for the first time in 26 years.

The 58,780sqm site at 172-210 Burwood Highway, Burwood East includes Australia’s strongest trading Coles and Kmart combination and the oldest Kmart store in the country.

The centre will be sold with an estimated net income of more than $9.5 million per year and a zero vacancy rate, according to CBRE national investments director, Mark Wizel.

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It is the first time the Burwood One shopping centre has been up for grabs in 26 years.

“Burwood is experiencing a lot of population growth and is also enhanced by further development including apartments and offices,” he says.

Burwood One has plenty of potential for more growth as does the suburb itself, and while it isn’t unusual for centres under $50 million to be owned by families, Wizel says it is rare for families to own shopping centres such as Burwood One.

A look at the Kmart when it opened on the corner of Blackburn Rd and Burwood Hwy in 1969. File image.

“We’ve certainly had a good start with Burwood One, which just hit the market today.”

“Burwood One has attracted shopping centre owners from Australia, China, Singapore and Hong Kongs, as well as investors.”

Check-outs at the East Burwood Kmart in 1969, after almost three months of trading.

“Given its size, location, tenancy profile and growth potential, this is the sort of asset which will attract a very strong field of buyers and that competition could drive a yield not seen before for an asset of its kind.”

Wizel says CBRE has sold all of the eight shopping centres it has marketed this year, from Coles Clayton which sold to a private investor for $17.1 million in March to Mornington Village Shopping Centre which fetched $39.38 million in May.

This article from Leader Newspapers originally appeared as “Burwood One shopping centre, home to Australia’s first ever Kmart, could fetch $200 million in first sale in 26 years”.