Northland 50 per cent stake sale Victoria’s biggest retail real estate move in seven years
The GPT Wholesale Shopping Centre Fund has sold its 50 per cent interest in Northland Shopping Centre.
Melbourne-based Nikos Property Group has snapped up a 50 per cent stake in Northland Shopping Centre for $385m in Victoria’s biggest retail property transaction since 2018.
GPT Wholesale Shopping Centre Fund relinquished its half of the Preston shopping hub as part of its strategy to mix up its portfolio and create more liquidity for investors, fund manager David Sleet said.
Northland in Melbourne’s inner north spans about 19ha and is one of the city’s major malls, housing retailers like Myer, Coles, Woolworths, Aldi, Kmart, Target and Hoyts Cinemas.
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The sale also comes with a 30-year, staged development masterplan with the potential to add 2300 new homes and 47,000sq m of office space to the existing shopping centre, subject to approval.
Nikos Property Group was behind the purchase, with the firm founded and chaired by Nick Adrianakos who once drove forklifts for the Pratt family but has gone on to become a billionaire in his own right.
Now managed by his son Theo, the group has spent a total of $828m since 2022 to acquire half stakes in four Vicinity owned and managed assets.
Others include Adelaide’s Elizabeth City Centre as well the South Australian capital’s Colonnades Shopping Centre, and Melbourne’s Broadmeadows Central.
CBRE retail capital markets head Simon Rooney said people loved to shop, especially in a place where they could find everything under the one roof.
Northland is based in Preston and is in the midst of a revitalisation project.
He added that Northland had the potential to add on offices and accommodation through its development plan, much like other shopping centres on large land holdings in densely populated suburban areas.
“It’s great for a mixed-use perspective in the medium to long term,” Mr Rooney said.
“Retail is becoming increasingly more attractive to the private and institutional investor market given its compelling return profile and in-built growth prospects.”
The transaciton comes as CBRE research revealed Melbourne had the lowest retail vacancy rate across Australia’s capital cities at the end of 2024, sitting at 6 per cent — more than half of the nation’s 11.3 per cent average.
Northland spans about 19ha, making it one of the larger shopping plazas in Melbourne.
Sydney followed at 7.1 per cent and Adelaide after that at 7.7 per cent.
Brisbane and Perth had the two highest vacancy rates of Australia’s major urban hubs at 18.5 and 22.2 per cent, respectively.
Nationwide, Australia’s retail vacancy rate is the lowest it has been since the first quarter of 2021.
CBRE retail property and leasing head Sheree Griff said Melbourne’s sports, entertainment and hospitality were driving tourism and the city’s increasing population was why its retail vacancy rate was the lowest of the nation’s capitals.
“Some of the biggest names and restaurateurs are in Flinders Lane,” Ms Griff said.
She added that a lot of retail store operators were also choosing Melbourne of Sydney at present.
Ms Griff said the nation’s retail market was very resilient, as proven by its upturn since Covid.
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sarah.petty@news.com.au
