Stonebridge and Colliers have been exclusively appointed to bring the newly constructed Cranbourne West Shopping Centre and surplus land to market on behalf of Woolworths Group’s development business Fabcot.
Cranbourne West Shopping Centre is strategically located in one of the strongest-growing municipalities in Victoria, approximately 50 kilometres southeast of Melbourne CBD in Cranbourne West.
Constructed by Fabcot in May 2020, the 6,051m2 centre is anchored by a full-line Woolworths and BWS, complemented by a mini-major, 11 specialty tenants, a standalone medical precinct, a kiosk and an ATM. The 100% fully-leased centre features an 84% weighting to national and chain retailers by GLA.
Stonebridge’s Justin Dower and Kevin Tong, in conjunction with Colliers’ James Wilson, Tim McIntosh, and Mike Crittenden are acting on behalf of Woolworths Group to bring the first newly constructed neighbourhood shopping centre brought to market in Melbourne since February 2020.
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 Wilson.
Justin 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 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 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 eight 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.” McIntosh added.
Woolworths Cranbourne West Shopping Centre and surplus land are being offered for sale via an Expressions of Interest (EOI) campaign, closing Wednesday, 15th March 2023.
