QIC Global Real Estate has sold a large format retail centre in Victoria for $97m, reflecting an initial yield of 4.75%.
Watergardens Homeplace is a large format retail (LFR) centre situated approximately 27km north-west of the Melbourne CBD. The property provides a total GLA of 25,931m2 and 827 parking spaces on a seven hectare site.
QIC Global Real Estate (QICGRE) has now completed the sale of the Robina Home + Life Centre ($66m) on the Gold Coast in Queensland and the sale of Watergardens Homeplace ($97m) in Taylors Lakes, Victoria.

“The divestment of these sites (jointly held by the QIC Property Fund and the QIC Shopping Centre Fund) is in line with client endorsed strategies for both funds,” said QICGRE Managing Director Michael O’Brien. “As non-core holdings, these assets don’t form part of QICGRE’s broader masterplans for Robina Town Centre and Watergardens, and the adjoining strategic land parcels owned by the funds. Both assets generated strong buyer interest and were sold at a significant premium to book value.”

Colliers’ Lachlan MacGillivray facilitated the sale of Watergardens Homeplace. The LFR centre is co-located within Watergardens shopping centre, in a major retail precinct providing convenient access to the catchment’s retail needs. The seven hectare site is anchored by a Bunnings, Harvey Norman, six national large format tenants and two national restaurant pad sites.
“Watergardens Homeplace was pursued by a large range of investors whom were attracted to its defensive nature in a high growth location, combined with the ability to add incremental value (STCA),” said MacGillivray.
Located in a strategic growth corridor 27km north-west of Melbourne’s CBD in Taylors Lakes, the centre caters to a considerable trade area population that is forecast to grow by 2.5% p.a through to 2030. The centre boasts a strong WALE of 4.0 years by income and provides opportunity for strategic remixing opportunities.
“Watergardens Homeplace attracted unprecedented levels of interest, with a record number of enquiries and bidders from interested parties located nationally and overseas,” said MacGillivray. “The result achieved represented the lowest yield recorded for a LFR centre of this size.
“This campaign highlights the pent-up demand for dominant, well located trophy assets like Watergardens Homeplace; at the conclusion of this campaign, there remains more than $1 billion in unsatisfied capital seeking opportunities in the LFR sector.”