IP Generation (IPG) have settled on Stockland Glendale in a $315 million deal, the largest NSW sub-regional transaction in more than 18 years. Colliers Managing Director, Asia Pacific, Retail Capital Markets, Lachlan MacGillivray, secured the transaction on behalf of Stockland.
The centre is anchored by Kmart, Target, Coles, Woolworths and Event Cinemas, complemented by a desirable mix of 10 drawcard mini-majors including TK Maxx, Rebel Sport and JB Hi-Fi, 66 specialty and kiosk retailers and 11 pad sites.
IPG’s acquisition of Stockland Glendale marks the first time the asset has been traded since its development in 1996, having been subject to institutional ownership in the intervening period.
Chief Executive Officer of IP Generation, Chris Lock said: “IP Generation is privileged to be acquiring this landmark, 19-hectare town centre in a catchment that it positioned for exceptional growth. This is the centre’s first change of ownership in the 30 years since its development, which speaks to how rarely these types of assets are traded. The compelling forecast returns and IP Generation’s track record has underpinned strong demand for this opportunity from our stable of investors.”
“This landmark transaction of Stockland Glendale is a reflection of the incredible demand for assets that boast both scale and convenience, as well as a comprehensive offering of both discretionary and non-discretionary retailer categories,” MacGillivray added. “Stockland Glendale is exceptionally land rich and the site coverage ratio of 28.2% offers leasing remixing and expansion potential.”
Stockland Glendale occupies a landmark 18.6-hectare site – the fourth largest retail land holding in NSW
IP Generation’s continued investment into the retail sector is proof of the strong demand for dominant retail assets which provide attractive return profiles. The company have continued its commitment to the sector with recent major acquisitions including Craigieburn Central (VIC) and a 50% interest in Rockingham Centre (WA).
“Our focus has been on taking advantage of unique investment opportunities within the market to acquire high quality, income producing assets with significant value-add potential,” Lock said.
“Many large corporations and fund investors such as IP Generation, are increasingly interested in and buying into the retail sector. The confidence they have shown is a testament to the current strength of the retail investment market. Complementing their purchase, a proposal has been lodged to develop the vacant land next to the centre with a residential/mixed-use focus, which will underpin future sales growth at the centre,” MacGillivray said.
Stockland Glendale was the first of the true super centre outdoor concepts combining retail, leisure and entertainment. Occupying a landmark 18.6-hectare site, it is the fourth largest retail land holding in NSW. The centre has extensive frontages to Stockland Drive and Lake Road, providing convenient access to the Newcastle CBD and surrounding suburbs.
The centre boasts robust sales performance with annual sales reaching $366 million in February 2024, and strong sales productivity of $10,553/m2. The centre attracts annual foot traffic of more than 4.8 million visitors, and customers spend an impressive $76 per visit on average. Stockland Glendale has been enhanced by the recently installed shade sail structure that provides covered parking and hosts weekly Farmers and Artisans Markets.
“The sub-regional sector continues to attract strong capital demand, fuelled by an appealing spread to the risk-free rate and borrowing costs. Private investors and syndicators looking for attractive income yields have emerged as the dominant players, providing an opportunity for institutional owners to recycle capital. We expect this trend to continue throughout the second half of 2024,” MacGillivray said.
