Diversified national property group Oreana has sold its fully-completed Kallo Town Centre in Kalkallo, northern Melbourne.

The newly completed neighbourhood shopping centre spanning over 7000 square metres was developed by Oreana and is anchored by a 12-year lease to Woolworths and supported by 19 specialty retailers, medical/pharmacy, a gym, childcare centre and fuel station.

Completed in late 2023, it has been purchased for $64.5 million by ASX-listed Region Group, recognising the popularity of the tightly held asset class that has enjoyed greater demand post-COVID.

Kallo Town Centre is strategically located in the northern growth corridor of Melbourne, 30 kilometres from the CBD and occupies a prominent site of 21,524 square metres in the heart of the Kalkallo masterplanned community.

The sale represents a yield of 5.98 per cent for Oreana, which is in expansion mode following the recent acquisition of land sites in Morayfield, Queensland and North Ellenbrook in Western Australia.

Oreana Managing Director Tony Sass said: “This transaction reflects Oreana’s focus on delivering high-quality projects that attract strong market interest. We’re excited to continue expanding our portfolio with upcoming developments including future neighbourhood shopping centres in Mickleham, Clyde and Wollert,” he said.

“Neighbourhood shopping centres have shown remarkable resilience and growth in demand post-COVID, and Kallo Town Centre’s strategic location in Melbourne’s growth corridor makes it an excellent investment.

“The sale of Kallo Town Centre underscores the strength of Oreana’s development capabilities and the enduring appeal of high-quality, well-located retail assets.”

For 20 years Oreana has focused on the delivery of housing, early education facilities and retail across Melbourne’s growth areas.

A strategic expansion of the privately-owned company over the past two years has increased its capability to both develop and build projects across Australia, with a growing focus on neighbourhood retail.

Oreana’s construction teams have commenced work on a range of retail projects in 2025, including the $18 million Farm Gate Local shopping centre in Clyde, the $75 million Botanic Village town centre in Mickleham and the $32 million Linfield Place shopping centre in Wollert.