Dickson Village Coles and build-to-rent complex sells to super fund for $157.5 million

Local developer and builder TP Dynamics sold the retail centre and apartment complex to Aware Super's real estate arm and Barings, a global investment group.

The retail complex is underpinned by the new flagship Coles supermarket and Liquorland, which are leased until 2035, as well as 10 other specialty shops.

It also includes 140 build-to-rent units spread across six levels.

The deal far surpassed all other commercial property transactions in Canberra during 2023.

Only two major deals have been brokered this year, including offices in Woden and the city, totalling about $40 million.

Commercial real estate group CBRE managed the sale of Dickson Village on behalf TP Dynamics.

CBRE associate director Tristan Cotchett said it was a swift sale process after the agency approached Barings and Aware in August.

"They were attracted to the location of Dickson town centre, the Coles and also the fact that the 140 units were complete," he said.

"If you look at a lot of the other BTR opportunities that are currently being presented, they're largely either on foot for [development application] assessment or they are DA-approved sites that haven't started construction.

"So this presented Aware Super with an opportunity to acquire a completed product that could be producing income before Christmas."

The sale price reflects a fully leased forecast yield of 6 per cent.

TP Dynamics managing director Tony Pan said the group was pleased with the outcome and looked forward to seeing the property "prominently feature in Canberra's institutional investment market".

The deal also marks the first major investment in a build-to-rent project in Canberra.

Mr Cotchett said the transaction would likely kickstart momentum in the emerging housing sector.

"I think it will be the first of many BTR deals for Canberra," he said.

Build-to-rent refers to a residential development owned by one company - often investment firms and superannuation funds - and rented out on a long-term basis.

Aware Super currently manages about $2 billion worth of real estate assets and is a key player in the Australian build-to-rent sector.

Through its property development, the super fund also offers a portion of subsidised rental housing for essential workers.

In 2021, Aware Super purchased 40 apartments in the Metropol complex near Civic, which are rented to essential workers at a discounted price.

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Aware Real Estate CEO Michelle McNally said the group was excited to expand its investment in Canberra.

"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," she said.

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