Cadence Property and Assembly Funds Management acquire a large format retail centre in Melbourne’s west

Assembly Funds Management and Cadence Property Group have acquired a Harvey Norman anchored 22,000sqm large format retail centre at 484 Ballarat Road, Sunshine North.

The asset was acquired off market from Queensland based Sentinel Property Group for $39 million, representing a fully let market yield of 6.95%. The deal was brokered by Stuart Taylor from JLL.

The site sits on a 6ha parcel of land opposite the Albion Station and within the Sunshine Town centre and is adjacent to a major Bunnings superstore, 14km northwest of Melbourne’s CBD.

The acquisition is a joint venture between us and Assembly, through its recently launched first fund ADPF1, with our team set to manage the investment on behalf of our partners.

We plan to revitalise the asset, which consists of 15 separate tenancies, by undertaking a capital works program, a full rebranding and initiating active management of the centre to enhance its performance for its tenants and customers.

The asset, backed by strong underlying land value and zoned for high density commercial and residential development, also carries significant future redevelopment potential with Sunshine poised to become the centre of Melbourne’s future western expansion.

Sunshine is a designated major strategic centre for the west of Melbourne and will benefit from significant State Government investment including the construction of a ‘super station’ that will link Sunshine to Melbourne’s western suburbs and boost regional services to Geelong and Ballarat.