Goodman swoops on homemaker centre in $202m deal

The deal will give the property giant control of a large Sydney site that could become one of the country’s most valuable distribution hubs.

The deal will lock in the group, headed by Greg Goodman, as the dominant player in the area. Picture: John Feder/The Australian.

The Goodman Group will tighten its grip on a major South Sydney site with the purchase of the Alexandria Homemaker Centre for about $202m.

The deal, via cash and scrip is through the Goodman Australia Industrial Partnership, and will lock in the group as the dominant player in the area.

The acquisition from the private Arkadia Property Group will see Goodman become the owner of the homemaker centre with the transaction showing a crisp yield approaching 4 per cent.

While the industrial property giant is unlikely to make any changes to the centre it will have longer term designs on the critical parcel over the next five to seven years.

The purchase is effectively the final piece in the Greg Goodman-led company gaining control of a four hectare site next to its Sydney Corporate Park.

Goodman declined to comment but has flagged its desire to undertake multi-level warehousing in the area and the site, combined with Goodman’s other holdings, could become one of the largest in the country.

In 2020, Goodman swooped on another property on the block, picking up 494 Gardners Road for $75m. That site is on the corner of Gardeners Road and O’Riordan Street, and was also a bulky goods retail centre.

Goodman on Tuesday delivered a healthy first quarter update saying that its property empire was on track as it focuses on rolling out its unique brand of premium green warehouses in urban locations around the world.

Alexandria Homemaker Centre sits between Green Square and Mascot and is on the corner of Doody and O’Riordan Streets. Arkadia bought the property in 2010 for $46.12m.

Alexandria and surrounds are being reshaped, with new medium to high density residential and retail developments being completed.

The multi-level enclosed homemaker centre has a diverse retail offering comprising electrical, furniture, bedding, homewares, lighting, floor coverings, blinds and much more.

It houses about 26 retailers including The Good Guys, Bing Lee, Baby Kingdom, Beacon Lighting, Snooze, Forty Winks, and Plush. It has a site area of 34,380sq m and has a gross lettable area of 22,417 sq m, and parking for about 717 cars.