A former forklift driver turned billionaire has splashed Victoria’s retail real estate market by purchasing a 50% stake in one of Melbourne’s largest shopping malls for $385 million. This deal marks the state’s biggest retail real estate transaction since 2018.
According to fund manager David Sleet, the GPT Wholesale Shopping Centre Fund has sold its half-share in Northland Shopping Centre as part of a strategy to restructure its portfolio and increase liquidity for its investors.
The iconic Northland Shopping Centre, located in Melbourne’s inner northern suburb of Preston, spans around 19 hectares and is home to major retailers including Myer, Coles, Woolworths, Aldi, Kmart, Target, and Hoyts Cinemas.
The sale also comes with an exciting development plan: a 30-year, staged blueprint that, pending approval, could bring 2,300 new homes and 47,000 square meters of office space to the site.
The buyer, Melbourne-based Nikos Property Group, was founded by Nick Adrianakos, who once worked as a forklift driver for the Pratt family but has since built a multi-billion-dollar fortune. Now managed by his son Theo, the group has spent $828 million since 2022 acquiring half-stakes in several Vicinity-owned properties, including the Elizabeth City Centre in Adelaide, Colonnades Shopping Centre in South Australia, and Broadmeadows Central in Melbourne.
CBRE’s Simon Rooney emphasized the ongoing appeal of retail properties, especially those offering mixed-use potential. Northland’s development plan aims to combine retail with offices and housing, providing long-term growth opportunities for investors.
This sale aligns with CBRE’s recent research, which showed Melbourne’s retail vacancy rate was the lowest among Australian capital cities at the close of 2024, sitting at 6%, well below the national average of 11.3%.
The property’s size and strategic location make it one of Melbourne’s key retail assets. Northland is undergoing a major revitalization to enhance its long-term appeal to shoppers and investors.