Large format retail portfolio hits the market

A large format retail (LFR) portfolio with assets in New South Wales and Queensland is set to hit the market. 

Listing agent Simon Rooney, JLL’s Head of Retail Investments – Australasia, says that LFR assets offer attractive yields and suggest they are less likely to encounter disruption from online competition.

The assets included in the portfolio up for grabs are: Homemaker The Valley, Fortitude Valley, QLD (pictured above); Homemaker Lake Haven, NSW; Homemaker Greenway & Greenway Plaza, NSW and Homemaker Prospect, NSW. 

 “The LFR sector has clearly benefitted from high growth in residential construction and household turnover,” Rooney said.  

LFR assets offer value-add opportunities such as future redevelopment and high-yielding cash flow, he said.

“The diverse range of tenants and use-types in the assets have transformed them into much more than traditional homemaker centres,” Rooney said.

“ The introduction of gyms, food and lifestyle uses have enhanced customer foot traffic and responded to the strong consumer trend towards health and well-being.

“Last year was a record year for LFR, with over $1.6 billion in transaction volumes recorded – boosted by the sale by LaSalle of Home Hub Castle Hill and Home Hub Marsden Park for $436 million to Aventus in May 2017.

“The LFR sector will benefit from the proposed planning reforms by the NSW Government,which plan to expand the use-types that can operate in LFR zoning and relax the requirements for loading facilities, bringing it in line with VIC and QLD.”

The portfolio will be offered for sale via a formal international expressions of interest campaign, closing 14 June 2018.