Campbellfield Plaza rides 24-hour Kmart lease to $74m sale

A sale worth $74 million has been rung up for a northern suburbs shopping centre.

Australian property group Charter Hall bettered “multiple bids” to pick up Campbellfield Plaza, which was sold by industry super fund developer ISPT.

JLL selling agent Simon Rooney says most of the buyer’s competitors were Melbourne-based high-net-worth investors, with some “institutional groups” plus bidders from Singapore and Hong Kong also in the mix.

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Charter Hall — described on its website as “one of Australia’s leading fully integrated property groups” — also recently paid $12.5 million for the Coburg Drive-In.

The 1.8ha plaza had been expected to fetch about $80 million, offering a net annual income of $4.6 million when fully leased.

Campbellfield Plaza sprawls over 1.8ha and occupies 5.9ha of land.

It’s anchored by “one of Victoria’s strongest Kmart stores” and the only one open 24 hours in Melbourne’s northern suburbs, plus a Coles, ALDI and Officeworks.

The centre occupies a 5.9ha site, 14km north of the CBD on the Hume Hwy and Mahoney’s Rd corner, and also comprises 19 specialty stores and parking for more than 800 cars.

Rooney says the $74 million deal is a “solid outcome”.

The centre features a 24-hour Kmart.

“Interest was quite strong,” he says.

“It’s a very strong performing asset. All the major stores are trading well and have long-term leases, and it has a solid residential base.”

Charter Hall Retail chief executive Greg Chubb describes the property as a “high quality’ shopping centre “underpinned by a secure income profile”.

The site also offers potential for redevelopment in the long-term.

Coles, Officeworks and ALDI are other key tenants.

Chubb says the buy follows “our other acquisitions in fast-growing metropolitan locations” and will be funded by proceeds from recent sales Charter Hall has made in Coomera, Queensland and Young, New South Wales.

The deal is due to settle in March.

This article from the Herald Sun originally appeared as “Campbellfield Plaza in Melbourne’s north nets $74 million”.