Images: Supplied.
  • Armadale retail property expected to fetch $5.5M
  • Malvern retail property expected to fetch $6M
  • Pascoe Vale childcare pre-leased to Guardian Childcare & Education

Two Melbourne retail assets coming to market are expected to fetch a combined $11.5 million. The properties are located at 833 High Street, Armadale and 84 Glenferrie Road in Malvern.

State of retail

The latest retail data from the Australian Bureau of Statistics showed a seasonally adjusted 0.6% month-on-month rise in turnover from July to August 2022, with the yearly rise from August 2021 to 2022 being 19.2%.

Food retailing, household goods, department stores, cafes, restaurants, and takeaway food all saw increases in monthly turnover, with clothing and other retailing seeing falls.

Monthly turnover, current prices, by industry – percentage change from previous month

Monthly turnover, current prices, by industry - percentage change from previous month
Source: Australian Bureau of Statistics.

Grocer and vacant corner site listed

The Armadale property is expected to sell for circa $5.5 million, managed by Colliers on behalf of Moda.

The 543 square metres of retail space is currently leased by premium grocer, The Leaf Store. The grocer recently signed a new 10-year lease with further three options of five years, providing a current annual income of $275,000 plus GST.

The Malvern property is expected to fetch some $6 million, with the property on the market for the first time in 30 years. The 500 square metre corner site, which comes with a  590 square metre building, was previously leased to National Australia Bank for over 100 years. The property is now being sold with vacant possession.

Both assets are for sale via on-site auctions on Friday 18 November 2022. Colliers is exclusively managing the sales.

Childcare centre leased for over $500K pa

A new childcare centre in Pascoe Vale in Melbourne’s north has been pre-leased to Guardian Childcare & Education.

Guardian secured the 1,623sqm site at 120-122 Cumberland Road on a 15-year lease with a pair of 10-year options, for an annual rent of $574,200.

It will move into the site upon the completion of construction in 2024, giving Guardian a second centre in Pascoe Vale.

Continuing the strong run of childcare centre leasing activity in Melbourne, the rental reflects a rate of nearly $4,350/place.

120-122 Cumberland Road
120-122 Cumberland Road, Pascoe Vale. Image: Supplied.

CBRE’s Sandro Peluso said, “This premium childcare leasing opportunity being brought to market emphasises the confidence of established and organised developers.”

“Childcare operators are excited about the potential in these developments, particularly when located side-by-side with high growth communities.

“With construction costs increasing monthly, there is a high level of demand for purpose-built early education facilities among operators who are willing to occupy premium space.

“We expect to see this trajectory continue into early 2023.”

CBRE’s Jimmy Tat added, “Over the past 12 months we have seen a big shift from operators who are now looking into more high-growth areas for extra security.”

“Premium, brand-new centres, located around community amenities and local schools, are highly sought after and this leasing deal highlights the importance of these factors.

“Quality operators with good reputations are not willing to compromise on this brief whatsoever.”

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