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A northern Melbourne town centre they developed has been sold for north of $64 million by the high-flying Sass Brothers.
As demand for shopping centres and large format retail assets continues to run hot, national property group Oreana sold the Kallo Town Centre at Kalkallo to the ASX-listed Region Group, who paid $64.5 million for the property.
Oreana realised a 5.98 per cent yield on the sale.
Region Group comprises two registered managed investment schemes, Region Management Trust and Region Retail Trust. According to its website it owns and manages 92 convenience-based retail properties valued at $4.36 billion.
The centre at Kalkallo, 30km north of the Melbourne CBD, was completed in late 2023 and spans more than 7000 square metres.
Anchor tenant for the centre is Woolworths, which is on a 12-year lease. There are also 19 specialty retailers, a medical centre and pharmacy, gym, childcare centre and petrol station.
The centre is on a 21,524sq m site in the masterplanned Kalkallo community.
Oreana is pursuing an expansion strategy recently acquiring more sites in Morayfield in Queensland and North Ellenbrook in Western Australia.
“We’re excited to continue expanding our portfolio with upcoming developments including future neighbourhood shopping centres in Mickleham, Clyde and Wollert,” Oreana managing director Tony Sass said.
Tony founded Oreana with brother Steven. The pair hit the headlines in Octover of last year when it was revealed they had paid $61 million for three adjoining clifftop mansions for a family compound at blue-ribbon Sorrento on Victoria’s Mornington Peninsula..
Tony Sass said growth corridors were key areas Oreana was exploring.
“Neighbourhood shopping centres have shown remarkable resilience and growth in demand post-Covid, and Kallo Town Centre’s strategic location in Melbourne’s growth corridor makes it an excellent investment,” Sass said.
The company has begun work on several retail projects already this year.
These include the $18-million Farm Gate Local shopping centre at Clyde, the $75-million Botanic Village town centre at Mickleham and the $32-million Linfield Place shopping centre, Wollert, all in Victoria.
Oreana has a focus on several asset classes beyond retail including residential, commercial and education projects.
