- Tarneit to see new shopping centre in late 2024
- Recently completed southeast Melbourne shopping centre also for sale
- Collins Street offering expected to fetch over $25M
A recently completed retail development in Melbourne’s southeast has hit the market, with another in the city’s west to open in late-2024. Melbourne’s world-famous Collins Street has also seen another property come to market, home to a mix of retail and healthcare tenants.
Tarneit to soon see new 13,100sqm town centre
The City of Wyndham has approved developer Goldfield’s planning application for The Sheds Tarniet.
Located some 30 kilometres west of Melbourne’s CBD, the new town centre is a $100 million, 4.7 hectare development located on the corner of Tarneit Road and Kenning Road.
Goldfields’ said the development will be anchored by a full-line 3,473 square metre Coles supermarket with Liquorland and McDonald’s.
Expected to open in late-2024, the 13,100 square metre town centre is also expected to play host to a range of specialty food stores, hospitality venues, a childcare centre, a medical facility, and a fuel station.
“Melbourne’s western corridor is one of the fastest growing regions in Australia and the population of the City of Wyndham is expected to expand to 423,000 by 2033,” Lachlan Thompson, CEO of Goldfields, said.
“The Sheds is perfectly positioned to offer future residents of Tarneit easy shopping options, national brands, local jobs and a central hub for the community. The fact that we’ve already secured two major national brands as anchor tenants show the market shares our confidence in this much needed offering that will support the growth of Tarneit in years to come.”
The layout and landscaping of The Sheds Tarneit site have been designed by innovative architects i2C Architects to reflect the agricultural heritage of the local area.
Construction at The Sheds Tarneit will commence in mid-2023.
Cranbourne West Shopping Centre hits the market
The newly constructed shopping centre and Surplus Land have come to market. Built by Woolworths Group’s development business Fabcot in May 2020, the shopping centre is some 50 kilometres southeast of Melbourne’s CBD in Cranbourne West.
The 6,051 square metre centre is anchored by a full-line Woolworths and BWS, along with one mini-major, 11 specialty tenants, a standalone medical precinct, one kiosk, and ATM.
The fully leased centre features an 84% weighting to national and chain retailers by gross lettable area (GLA).
Stonebridge’s Justin Dowers and Kevin Tong, in conjunction with Colliers’ James Wilson, Tim McIntosh, and Mike Crittenden are acting on behalf of Woolworths Group.
Colliers’ James Wilson said the opportunity follows an undersupply of core neighbourhood shopping centres offered to market across Australia in 2022, with only 44 Neighbourhood transactions nationally, representing a 40% decrease YOY compared to 2021.
“Core neighbourhood shopping centres located in growth corridors of capital cities continue to be one of the most highly sought-after asset classes nationally. The non-discretionary weighting, inflationary hedged income and defensive WALE have proven resilient throughout the economic cycle and post-pandemic era, attracting a strong depth of private and institutional capital,” said Mr Wilson.
Mr Dowers said “Melbourne is exceptionally well placed to benefit from a significant growth in migration following an easing in international border restrictions. Metropolitan Neighbourhood Shopping Centres like Woolworths Cranbourne West are the best placed asset sector to benefit from this resurgence.
“The scarcity of quality neighbourhood shopping centres offered to the market in Melbourne over the last few years has driven a significant pent-up demand. We expect strong interest from a breadth of buyer profiles – local, private, developers, institutional and syndicate.”
Stonebridge’s Kevin Tong added that there had been a renewed engagement from international buyers, particularly from Asia, in recent months.
“Interest has rapidly picked up from Asian buyers at the back of the pandemic, with circa. 40% of Victorian neighbourhood and supermarket transactions were secured by off-shore investors based in Asia in 2022. It represents a strong return of international buyers who recognise the potential in the Australian retail market,” said Mr Tong.
The 3.56-hectare site is 100% leased and offered with a new 10-year lease to Woolworths with options to 2082, and all speciality retailers have fixed annual rent increases of 4% and above and a weighted average lease expiry of 8 years by GLA.
“Cranbourne West Shopping Centre is anchored by the only full-line Woolworths supermarket in the Main Trade Area, servicing a rapidly expanding Main Trade Area population of 39,518 that is growing 38% faster than the metropolitan Melbourne average to 2041,” said Colliers’ Tim McIntosh.
“What is unique about the offering is the 1.1 hectares of Surplus Land ready for immediate development with formal expressions of interest from national retailers for uses including supermarket, childcare, fast food and fuel. The surplus land benefits from direct frontage to 17,000 cars passing daily, with prominent exposure to both Hall and Evans Road.” Mr McIntosh added.
Woolworths Cranbourne West Shopping Centre and Surplus Land are being offered for sale via an Expressions of Interest (EOI) campaign, closing at 2:00 pm (AEDT) Wednesday, 15th March 2023.
Collins Street blue-chip to fetch over $25M
Located at 239 Collins Street, a two-storey plus basement building has come to market and is expecting to attract interest in excess of $25 million.
The property is fully leased to five high-quality retail and healthcare tenants, anchored by OPSM.
Colliers’ Director of Investment Services, Matt Stagg, said the property benefits from high pedestrian exposure being situated at the epicentre of the financial and luxury retail precinct.
“The property benefits from dual street frontages to Collins Street and Manchester Lane, with Manchester Lane set to gain even more exposure, acting as a cosmopolitan CBD thoroughfare linking Collins Street to the new Town Hall Train Station entrance, scheduled for completion 2025,” Mr Stagg added.
Mr McIntosh said, “The property is expected to generate strong interest from domestic and international high net worth private investors seeking a bluechip investment on Collins Street, renowned as Melbourne’s most prestigious and sought after street by both luxury retail tenants and investors.”
Mr Stagg added, “Collins Street properties are very tightly held and viewed as intergenerational investments by high net worth families and investors. 239 Collins Street has been owned by one private owner and has not traded in more than 30 years.”
239 Collins Street is offered for sale via an International Expressions of Interest campaign closing at 12 pm (AEST), Thursday 30th March 2023.
