Joint venture partners, MaxCap Group and Troon Group have confirmed the Chirnside Lifestyle Centre has been acquired by IOOF Investment Services for over $50 million on a 5.25% capitalisation rate, in a deal secured by Colliers and Stonebridge.

The 11,100 square metre gross lettable area large format retail (LFR) project, comprising 286 on-grade car bays, was 100% pre-leased at the completion of construction in December 2022. The joint venture also divested two pad sites directly to McDonald’s and KFC as part of the project.

Chirnside Lifestyle Centre is located 32km north-east of the Melbourne CBD in Chirnside Park, part of Melbourne’s eastern growth corridor and gateway to the Yarra Valley. The Centre is fully leased with a tenant profile dominated by brands including Harris Scarfe, Baby Bunting, Fantastic Furniture, and Super Cheap Auto.

The 3.5-hectare site is well positioned on Maroondah Highway and underpinned by a prime Commercial 1 land zoning, making it an attractive long-term land holding opportunity.

MaxCap Group head of direct investment, Simon Hulett said, “This is our third joint venture with Troon Group, and we couldn’t be happier with the strong partnership we have built. This project continues to build on our long track record of success together.

“The development represents a highly defensive retail investment backed by long leases to national tenants with strong covenants. We’re delighted it has been acquired after a highly competitive sales campaign and are pleased to deliver further amenity into the community.”

Troon Group managing director, Tom McInerney said, “We identified the site in 2020 as part of the Kaufland supermarket portfolio just as the pandemic had put us all into lockdown. We had a strong conviction about the quality of the site and the opportunity. The site occupies a prominent elevated position with 38,000 cars passing daily. Through our existing relationships with the major retailers, we were able to quickly secure a mix of tenants that complement the precinct and de-risk the project with MaxCap.”

MLC Asset Management’s Mark D’Arcy-Bean added, “Being a brand-new construction with annualised growth, Chirnside Lifestyle Centre will become a welcome addition to our LFR portfolio, given its strategic location within a rapidly growing area with opportunities for future development.”

The sale was managed by Colliers’ Tim McIntosh, James Wilson, and Mike Crittenden in conjunction with Stonebridge Property Groups’ Justin Dowers, Kevin Tong and Phillip Gartland.