Nikos Property Group strikes Victoria’s largest retail acquisition since 2018

Melbourne-based Nikos Property Group has forged its fourth partnership with Vicinity Centres after settling on a $385 million deal to acquire the GPT Wholesale Shopping Centre Fund’s 50% interest in Northland Shopping Centre.

CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney introduced Nikos and negotiated the transaction, alongside co-agent Lachlan MacGillivray, Colliers’ Asia Pacific Managing Director, Retail Capital Markets.

It is the largest Victorian retail transaction since 2018 and further strengthens Nikos Property Group’s relationship with Vicinity Centres, which co-owns and manages the asset.

Since 2022, Nikos Property Group has outlaid $828 million to acquire four 50% stakes in Vicinity owned and managed assets: Adelaide’s Elizbeth City Centre ($170.0m in 2024), Colonnades Shopping Centre ($138.2m in 2022) and Melbourne’s Broadmeadows Central ($134.5m in 2023).

GWSCF Fund Manager, David Sleet noted, “The divestment of GPT Wholesale Shopping Centre Fund’s 50% interest in Northland continues the implementation of the Fund’s strategy to recycle assets to enhance portfolio quality and composition, create liquidity for investors and position the Fund to continue to deliver consistent outperformance.”

CBRE’s Mr Rooney said the acquisition was strategic and highly opportunistic for Nikos, as co-owned stakes in high-quality regional assets were becoming harder to secure.

The Nikos interest was underpinned by the centre’s robust performance, secure major tenant covenants and significant future development potential, located 13km north-west of the Melbourne CBD, with the site offering potential for a long-term staged masterplan development subject to the relevant panning approvals.

“The Northlands transaction highlights the resurgence of investor interest in large regional and sub regional shopping centre stakes, with 15 part-share deals totalling $3.5 billion having been completed since the start of last year,” Mr Rooney noted.

“We expect to see a further improvement in overall investment activity and investor demand as interest rates are lowered, with several large regional shopping centre transactions currently in play.”

Mr MacGillivray shared, “This landmark transaction shows a vote of confidence in the market and strategically positioned, highly resilient "fortress style" assets continue to be in strong demand. The retail sector is experiencing significant tailwinds, as demonstrated in the recent REIT results, highlighting positive leasing spreads and extremely strong centre occupancy.”

Northland Shopping Centre occupies a prominent 19.04-hectare site and offers significant development potential via a masterplan for a 30-year staged development.

The centre has substantial gross lettable area (GLA) of approximately 98,238sqm and is anchored by leading national retailers, including one of the best performing Myer stores in Victoria, Coles, Woolworths, Aldi, Kmart, Target and Hoyts Cinemas.

It boasts an attractive major tenant WALE of nearly 7.1 years by income and services a substantial trade area of more than 500,000 residents.