Stonebridge Property Group has successfully completed the sale of the Coles & ALDI anchored Kilmore shopping centre for $38,880,000, reflecting a sharp 5.06% yield, following a competitive Expressions of Interest campaign managed by Justin Dowers and Kevin Tong of Stonebridge Property Group.
Following strong interest from both domestic and offshore capital, the asset was acquired by an offshore Chinese investor in their first significant shopping centre investment, sourced via Stonebridge’s Asia Practice team.
The property was sold on behalf of Looop, an international private equity and venture capital group led by Jeff Friedmann, with over 50 years of experience across property development, asset management and diversified commercial sectors. Looop originally acquired the asset more than 20 years ago as a freestanding Coles and subsequently expanded the centre through the addition of an ALDI in 2016, transforming it into a dual-supermarket anchored retail asset.
The divestment reflects the group’s long-term investment approach, with Looop progressively enhancing the asset’s scale and income profile over its ownership period. Beyond Kilmore, Looop has an established track record in the acquisition and development of retail and commercial property, with a particular focus on shopping centre assets across Australia and the United States.
Located approximately 60 kilometres north of the Melbourne CBD, the Kilmore shopping centre is a dual-supermarket anchored retail asset comprising 5,264 sqm of gross lettable area within Mitchell Shire’s primary retail centre. The property is anchored by a 10-year lease to Coles, with two further 10-year options, and a 20-year lease to ALDI with an additional 10-year option, and is further supported by national tenants including McDonald’s, Viva Energy, Amplifon and Bakers Delight.
Justin Dowers, National Partner at Stonebridge Property Group, said:
“While the quantum is below that of typical neighbourhood centre transactions in today’s market, the final yield of 5.06% is a compelling indicator of current investor sentiment within the convenience retail sector. Supermarket- anchored neighbourhood centres continue to outperform, supported by resilient income profiles, long lease structures and exposure to non-discretionary spending, with transaction volumes increasing 62% year-on-year to the March quarter.”
“Assets of this nature are increasingly difficult to replicate, with construction costs and planning constraints materially limiting new supply. This is intensifying competition for existing neighbourhood centres and driving continued yield compression across the sub-sector, alongside a 31% increase in sale rates over the past 12 months.”
Kevin Tong, Partner at Stonebridge Property Group, said:
“This transaction continues the strong momentum we are seeing from Asian capital into Australian retail, with Stonebridge transacting in excess of $200 million of shopping centre assets to this buyer cohort in 2026 alone.”
“The purchaser is a first-time entrant into the shopping centre market, however this outcome reflects more than six years of engagement, education and relationship building. While Kilmore is a regional location, the strength of the underlying tenant covenants in Coles and ALDI was a key driver of purchaser interest, consistent with broader trends we are observing across the supermarket sector.”
“We are also seeing that many offshore Asian buyers are less impacted by rising interest rates, with the ability to transact with low leverage or on an all-cash basis. This provides a significant competitive advantage in tightly contested campaigns and continues to support yield compression for high-quality assets.”
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