Melbourne’s Brimbank Plaza changes hands for $150m
The retail property market has received a boost with US private equity giant Blackstone sealing a deal to sell the Brimbank Plaza shopping centre in Melbourne’s northwest to a consortium led by Malaysian-backed group Mulpha for about $150 million.
The deal is a key marker for the under-pressure sector and will spur hopes that a wave of Asian capital will chase shopping centres across Australia, potentially providing a new sources of capital.
Mulpha had long been in talks to buy the centre from Blackstone and it is leading the deal on behalf of a series of Chinese-born investors who took an 80% interest. Mulpha will take a minority interest and become manager.
Blackstone picked up Brimbank Shopping Centre in 2016 from Vicinity Centres as part of a $613.3 million deal in which it also bought Clifford Gardens Shopping Centre in Toowoomba and Forest Hill Chase Shopping Centre in Melbourne. The Brimbank property traded for about $162.68 million in that transaction.
The majors, along with 91 specialty stores, contribute to a combined fully-leased net income of $12.3 million per annum with more than 80% of tenants trading as non-discretionary and service-based.
CBRE director investments, Mark Wizel, who marketed the property with Justin Dowers and Lewis Tong confirmed the sale but was unable to provide details on price or identity of the buyer.
Wizel says the significance of the sale os clear to see at a time when sub-regional shopping centres have been under a lot of pressure.
This article originally appeared on www.theaustralian.com.au/property.
