22 November 2022
Newmark Capital’s Shopping Centre Revamp Approved
Melbourne fund manager Newmark Capital, the property syndicate backed by Chris Langford, has secured approval to develop a mixed-used precinct in south-east Melbourne.
Newmark struck a $135-million deal to purchase the Brandon Park Shopping Centre from Vicinity Centres and Telstra Super in 2018. At the time Langford said the centre had been targeted as a “gateway site” in a strong and growing demographic, 24km south-east of the CBD.
The current centre sits on a 5.8ha site and offers 23,000sq m of gross floor area with 80 retailers including anchor tenants Coles and Aldi. The centre also has 1340 car spaces. An initial 10-storey application was knocked back by the council in 2021 before the seven-storey amended plan was proposed in July.
Under now-approved plans, the centre will be expanded to include retail and medical offerings on the ground floor, two levels of office space, and 103 serviced apartments.
Newmark Capital head of property Angus Machutchison said the introduction of new uses at Brandon Park would drive visitation to the Wheelers Hill and Mulgrave area.
“The expanded offerings will bring more activity to the site including office and visitor populations, while the served apartments will serve the broader community by providing well located, high quality accommodation options,” he said.
Machutchison said Newmark Capital, which manages assets in excess of $1.1 billion across single and multi-asset property trusts, plans to commence construction in the second half of 2023.
▲ Artist impressions of the apartment complex planned at Brandon Park Shopping Centre.
Brandon Park has struggled for customers after the rise of nearby Chadstone Shopping Centre and The Glen. The complex has been in Wheelers Hill since the 1970s.
In April, Kmart announced it would close its store in Brandon Park early next year after almost four decades of operation out of the shopping centre.
For the past four years Newmark Capital has been working with the City of Monash, shopping centre tenants, local businesses and residents to ensure the development will bring value to the Wheelers Hill area.
“The new mixed-use precinct will generate employment opportunities, improve visitor experience and bring vibrancy to the surrounding community,” Machutchison said.
Closer to the CBD, in South Yarra, Newmark Capital is working with Gurner and Qualitas to breathe life into the developer’s stalled Jam Factory project.
Under revised plans, the $1.4-billion project will include a five-star, 170-room hotel, upgraded cinema and 400 high-end apartments as well as 18,500sq m of retail space, 20,000sq m commercial office space, 1200 parking bays and 7000sq m of public realm.
Late last year, Newmark Capital’s first listed real estate investment trust was floated on the ASX.
Prior to that, Newmark bulked up the trust, acquiring three Bunnings with an end value of more than $200 million. These include Bunnings Eastgardens in Sydney’s eastern suburbs, a new Bunnings being constructed in Preston in inner Melbourne and another in Melton in Melbourne’s outer west.
The fund manager has since followed up with the acquisition of a $57 million large format retail centre across a 2.8ha site at Underwood in suburban Brisbane.
Article taken from ‘The Urban Developer’.