Build to Rent development Dickson Village has been sold for $157.5m with a 6.0% fully leased forecast yield to the property investment platform Aware Real Estate for Aware Super and its real estate partner Barings.
The deal was struck on behalf of local developer Tony Pan of TP Dynamics.
“This opportunity exemplifies Aware Real Estate’s focused investment strategy to target locations around existing and new infrastructure that we believe drive long-term demand and underpin capital growth. With a real estate portfolio of around $2bn, we are excited to further expand into the Canberra market with Dickson Village.”
Michelle McNally, CEO, Aware Real Estate
The six-storey mixed-use development reached practical completion in September 2023 and features a neighbourhood retail centre anchored by supermarket giant Coles, alongside 140 Build to Rent apartments designed and developed to meet demand in the very tight Canberra rental market.
“Our team at TP Dynamics has worked tirelessly to deliver on our goal of developing an exceptionally high-quality retail and Build to Rent asset. We are very pleased with the outcome and look forward to seeing this asset prominently feature in Canberra’s institutional investment market.”
Mr Pan, TP Dynamic
The neighbourhood retail centre at Dickson Village is predominantly anchored by Coles’ latest concept full-line supermarket and liquor land on a new 12-year lease to 2035, with ten foods and services-based specialty shops.
“Barings is pleased to continue its partnership with Aware Real Estate through the sourcing of a high-quality mixed use residential and retail asset that will benefit from significant gentrification and infrastructure investment including recently completed rail infrastructure.”
Shaun Hannah, Executive Director, Barings
Residential parking spaces can be found on Level 1.
Dickson Village is situated in the heart of Dickson, just four kilometres north of the Canberra CBD.
“Aware Real Estate’s acquisition of Dickson Village is a highly strategic investment, underpinned by what is forecast to be a high performing Coles supermarket on a long-term term lease and a Build to Rent offering which is expected to be high demand as a result of the historic low residential vacancy rate in Canberra.”
Mr Douglas, CBRE
It is surrounded by a range of completed, under construction or approved medium and high-density residential developments and is highly accessible via public transport, being only 400 metres from the Dickson Interchange.
“High-quality assets like Dickson Village are rarely traded in the very tightly held Canberra market. The project’s completion is well timed to capitalise on strong rental growth in the Canberra residential sector, underpinned by the low level of vacancy and increased demand from the private and health sectors, alongside the student market.”
Mr Purdue, CBRE
The transaction was brokered by CBRE’s National Retail Director James Douglas, ACT Managing Director Nic Purdue, and Associate Director Tristan Cotchett.
