Banjo Bond has grandad Alan’s nose for property, buying a shopping hub for $56m

The developer grandson of late tycoon Alan Bond shows he has an eye for a commercial property bargain by adding a Newcastle shopping centre to his fund house’s portfolio.

Cosgrove Group, co-founded by Banjo Bond, has bought this retail centre in Warners Bay for $56.5m.

Property developer Banjo Bond’s funds house, Cosgrove Group has bought a shopping centre near Newcastle in NSW for $56.5m, adding to its holdings which include warehouses, offices, accommodation and retail property across Australia.

The company has been buying up assets while the commercial property sector is at a low point, betting that it will benefit as consumer spending bounces back in growth areas and that lower interest rates will also boost returns.

The property development and investment firm co-founded by Alan Bond’s grandson has made its mark at a time when few local buyers are in the market, giving it the chance to pick up bargains.

The Cosgrove Group has also been targeting large format retail centres, which have proven to be one of the better performers in tough economic conditions. In the latest play it has picked up a centre from the listed HomeCo Daily Needs REIT in Warners Bay, NSW, for $56.5m via real estate agency Colliers.

The deal is the second between the parties after Primewest last year bought a 23,400sq m large format retail centre in Midland, WA, from HomeCo for $74.75m. The Warners Bay acquisition comes hot on the heels of Cosgrove buying The Esplanade Hotel in Fremantle, Perth from Centuria in July.

Cosgrove Group director Banjo Bond.

The retail centre is in a fast-growing area with the 12,336sq m centre entirely occupied by listed and/or national retailers. Tenants include well-known brands such The Good Guys, Officeworks, Supercheap Auto and Pillow Talk.

Mr Bond said this was “an established and well-trading centre on a large landholding fronting major road infrastructure. It’s becoming increasingly difficult to find land large enough to develop large format retail centres with any scale, which we believe will make this asset more valuable in the future”.

Cosgrove director Rob Thomas pointed to the greenfield house and land growth in the area and NSW government plans for a further 20,000 medium-density homes around three train-stations near the centre.

The centre is well positioned to capitalise on this population growth with growing retail trade expected,” he said.

Colliers agent James Wilson said HomeCo Warners Bay was the second largest large-format retail centre to transact nationally this year, behind The Bayview Centre in Warrawong, NSW.

Mr Thomas said Cosgrove’s transactions were well supported by its investor base and it was keen to capitalise “on the current opportunities in the marketplace”.

Fremantle’s Esplanade Hotel was purchased in July.

In a nod to improving sentiment, particularly for retail centres, he said the company was “encouraged by a growing number of savvy and experienced investors wishing to participate in our counter-cyclical investment plays”.

The Cosgrove operation, once known as PWD, had started with development plays but is also undertaking funds management and is targeting properties where it believes it can add value. Mr Bond built up a track record in both fields with projects in Sydney. In 2019 his company, which now includes his father and property figure John Bond sitting on the board, undertook its first project – an industrial complex in South Strathfield in Sydney.

In a controversial business career the late Alan Bond initially made his money in property development. He was named Australian of the Year in 1978 and funded Australia’s 1983 America’s Cup win.

His son, John, co-founded funds manager Primewest that was taken over by Centuria Capital.

The son and grandson’s deal making has been far less prolific than Alan’s but they are building up an impressive name in buying properties. The largest deal so far was Cosgrove $116.5m purchase of the historic Esplanade Hotel.

Originally published as Banjo Bond has grandad Alan’s nose for property, buying a shopping hub for $56m