After 26 years of ownership by the Hansky family, the complex has been sold to an international investor for more than $180 million. The centre has been servicing the daily shopping needs of residents from Burwood, Box Hill South and surrounding suburbs for many years and its Kmart store, opened back in 1969, is Australia’s oldest.
Located at the intersection of Blackburn Road and Burwood Highway, the centre’s Kmart Logo Design is a prominent feature and is joined by Aldi and Coles supermarkets, a gym, specialty stores and a First Choice Liquor store.
The expected sale price of the large 58,780sqm commercial site had been estimated at around $180 million. However Mark Wizel, national director of CBRE, said the eventual outcome was a record when it comes to suburb shopping centres particularly when comparing the sale price with the income generated, adding:
“The buyer that has acquired Burwood One did so accepting a return of about 5% annually. The return is the lowest ever recorded for a shopping centre of a subregional nature.”
While Wizel said the buyer paid a premium for the centre, the deal was viewed as a ‘generational investment’. Enjoying a zero vacancy rate, the Burwood East shopping centre, which first went on the market in mid-2018, had generated a net income in excess of $9.5 million annually.Get a Free Quote for Logo Design