New Owner for Iconic Melbourne Mall

The Burwood One Shopping Centre, a well-known retail hub in Melbourne and home to Australia’s first Kmart, has been sold in an off-market deal for AU$210 million. The 58,800 m² centre, located about 17 km east of Melbourne’s CBD, has served shoppers for 56 years.

The buyer is the convenience retail fund of Charter Hall, which aims to expand its portfolio of essential retail properties. The sale covers a property with long-term established tenancy, including a 24/7 Coles supermarket, a 24/7 Kmart, an ALDI store, seven mini-majors, roughly 40 specialty stores and several kiosks.

Why This Deal Matters

This transaction represents a rare large-scale suburban retail sale in Melbourne, deals over AU$200 million have become increasingly uncommon in recent years. The fact that Burwood One achieved such a valuation reflects strong investor interest in “convenience retail,” shopping centres with essential retail anchored by supermarkets and discount stores.

According to the involved broker, the sale confirms there is limited supply of assets of this scale on the market, which increases competition among buyers for well-performing centres. That competition is driven by population growth and constrained new retail developments, which together hint at steady rental and value growth ahead.

Strategic Location and Future Potential

Burwood One sits on a commercially zoned corner at the intersection of Burwood Highway and Blackburn Road, a location with strong catchment and accessibility. It lies close to a major university (Deakin University) and is in proximity to the planned Suburban Rail Loop East. That gives the site added long-term value for investors considering both retail yield and redevelopment potential.

Moreover, the stable anchor tenancy, supermarkets and discount retailers, provides investor confidence. These retailers are less vulnerable to economic swings than discretionary fashion or luxury stores, offering steady demand even in lean times.

What This Means for Retail Investors

For investors, the deal suggests a growing preference for essential-retail anchored malls integrated in suburban catchments. With urban population growth and limited new supply, high-performing centers like Burwood One are likely to remain attractive investments.

If you follow retail real estate, this sale signals a continued shift away from large urban malls toward smaller, convenience-oriented centers that cater to daily needs.