Strategic $107.5 million Melbourne acquisition boosts HomeCo Last Mile Retail Logistics Fund

HMC Capital has expanded its HomeCo Last Mile Retail Logistics (LML) Fund with the $107 million acquisition of Brandon Park Shopping Centre in Melbourne’s south-east.

CBRE’s Simon Rooney, James Douglas and David Minty, introduced HMC and negotiated the sale of the metropolitan retail and mixed-used investment opportunity on behalf of Newmark Capital, with JLL acting as the joint agent.

LML is an unlisted wholesale fund focused on essential daily needs properties with growth upside.

Brandon Park was acquired by Newmark Capital in 2017, with development approval obtained in 2022 to add further medical, retail, commercial and residential usages across the site, which is designated as a ‘Major Activity Centre’ under planning controls.

The significant Melbourne asset encompasses 5.81 hectares of land with a retail centre anchored by Coles and Aldi.

It currently offers a gross lettable area of 23,038sqm, reflecting a low site coverage of 40%. In addition to the supermarket anchors, the centre offers five mini-majors and 86 specialty tenancies and kiosks.

CBRE’s Mr Rooney noted, “The offered attracted keen interest from a wide range of investors given its metropolitan Melbourne location coupled with the opportunity to enhance the retail offering via strategic repositioning. The site also offers future potential for a large scale, mixed-use development opportunity subject to the relevant planning approvals. Shopping centres are increasingly evolving into multi-dimensional precincts, with Brandon Park providing the ideal platform to deliver a future project of scale and flexibility.”

Situated in Wheelers Hill, approximately 19km south-east of the Melbourne CBD and 2km from Monash University, the centre provides convenient access to major arterial roads and broader Melbourne from its corner location on Springvale Road and Ferntree Gully Road.

The asset is strategically positioned to Melbourne’s workforce, adjacent to Victoria’s largest employment hub outside of the CBD, the Monash National Employment and Innovation Cluster (NEIC).

The location provides a robust main trade area of 85,870 residents and a local workforce of 6,000 within a 1km radius driving retail performance, while creating demographics and demand drivers supportive of mixed-use development.