Dexus have acquired the Homemaker Prospect Centre from Altis for about $65 million on a 7 per cent yield.
The asset was part of a $500m portfolio of 4 assets Altis took to the market in 2018 on behalf of its primary investor, First State, but did not sell. At the time, Altis sold both the Homemaker Centre at Wetherill Park to Aventus and at Fortitude Valley to Arcadia netting them $282.4M.
The 25,770sqm large-format retail centre near Blacktown is predominately a single level, outdoor/open format, homemaker destination, which originally commenced trading during 1986. Altis acquired the asset in 2013 for $40.45 million.
The property’s anchor tenants, Fantastic Furniture, The Good Guys, Paul’s Warehouse and Bing Lee are supported by a further 27 well mixed retailers including recognised brands, The Sleeping Giant, Knebel Kitchens, OMF, Plush, Beacon Lighting, Subway, and Beaumont Tiles. Parking facilities are provided for approximately 541 vehicles.
Dexus have suggested that they intend to convert the Centre over a period of time to an industrial facility, given its proximity to the M4 and the centre of Western Sydney. Increasing industrial rents, declining retail rents and the greater site yield (ie floor space) which can be generated from an industrial asset that doesn't require as much car parking, mean that these sites could generate more income from industrial uses than traditional bulky goods uses.
We may see more change of uses to come.
Colliers International and Stonebridge Property Group’ managed the sale for Altis.