Mildura Retail Centre Changes Hands for $130m

The largest shopping centre in Victoria’s Sunraysia region has changed hands for about $130 million in an off-market deal.

IP Generation sold Mildura Central to commercial investor Heine Brothers.

The transaction is one of the biggest regional retail property sales in the state of the past 12 months and underscores continued investor appetite for dominant non-metro shopping centres.

Mildura Central occupies a 7.04ha site at 831 Fifth Street and is the only fully enclosed, air-conditioned shopping mall in the Sunraysia district. Mildura is 542km north-west of Melbourne and 396km west of Adelaide.

The centre comprises more than 20,200sq m of retail space and is anchored by a Woolworths supermarket and a Kmart discount department store.

Kmart occupies a tenancy that was formerly leased to Target and has been refurbished as part of recent works at the centre.

The mall also includes about 70 specialty retailers across fashion, electronics, homewares, food and services, and has more than 2000 carparking spaces.

Tenants include a mix of national and international chains, positioning the centre as the primary retail destination for the region.

Mildura Central services a wide trade area that extends into parts of New South Wales and South Australia, reflecting the relative isolation of the region from other major retail hubs.

The primary catchment is estimated at more than 60,000 people.

IP Generation acquired the shopping centre in 2021 for about $81.1 million, at a time when uncertainty over bricks-and-mortar retail values due to the rise of e-retail had dampened investor sentiment.

▲ Mildura Central, the dominant retail centre in the Sunraysia region, is anchored by a Woolworths supermarket.

The sale comes after several years of operational stabilisation and tenant repositioning.

The divestment follows the acquisition of IP Generation by MA Financial, which has been reshaping its real estate platform and recycling capital across sectors.

Heine Brothers has been steadily expanding its commercial property holdings, with a focus on income-producing assets in metropolitan and regional markets.

The addition of Mildura Central materially increases Heine Brothers’ exposure to regional retail and adds a dominant asset with limited local competition.

Investors have increasingly targeted assets with large catchments and essential retail offerings as consumer spending patterns continue to normalise.

Transactions in the subsector last year included Lake Macquarie Square in NSW, a sub‑regional shopping centre that sold in early 2025 for about $122.5 million.

Regional centres with strong anchor tenants have generally outperformed smaller neighbourhood malls and secondary metropolitan centres.

The sale also reflects a broader recalibration in the retail property market as owners selectively exit mature assets.