Forza Capital acquires Epping Hub for $70,250,000

22 February 2023

Epping Hub is a strategic Large Format Retail Centre, anchored by tenants such as OfficeWorks and Chemist Warehouse, located on the corner of High Street and Cooper Street in Epping, 22km north of the Melbourne CBD.

The asset was sold on behalf of HomeCo Daily Needs REIT to Forza Capital and Enclave Living/Jayland for a combined $70,250,000. The off-market sale was brokered by JLL’s Senior Director of Retail Investments Stuart Taylor and Director of Retail Investments Tom Noonan.

The 9.124ha land holding, comprises a 7.484ha Large Format Retail asset, providing 30 tenancies, a GLA of 22,038 sqm and a Weighted average lease expiry of 1.7 years which was purchased by Forza Capital, in addition to a 1.6 ha vacant parcel of land ripe for immediate development acquired by Jayland.

Mr Taylor commented “The sale of Epping Hub confirms the ability to achieve strong pricing outcomes for well-located retail assets, especially those in metropolitan locations, which are considered to be ‘land-rich’.”

“The sale continues the theme of non-traditional retail investors entering the sector, attracted to the ability to drive value further via development strategies and introduction of alternative uses.”

Sid Sharma, HomeCo Daily Needs REIT CEO said: “The sale price of the asset was at a 2% premium to book value. This transaction continues to showcase the high demand within our subsector and the high quality nature of our assets.”

Ashley Wain, Director of Forza Capital commented “The Epping property was identified as a strategic landholding, with low site coverage and planning controls that supports more intensive mixed-use development.”

“Forza Capital raised $48 million in equity from its client base of high net worth investors and intends to embark on a strategic overhaul of the asset including the construction of additional floor space and improvements to the tenancy mix” Mr Wain said.