A strong-performing freestanding Woolworths supermarket on a net lease alongside a collection of prime retail shops hits the market. Stonebridge Property Group’s Justin Dowers and Kevin Tong have been exclusively appointed to sell Hampton Central.

The property resides on a significant 3,354m2 Commercial 1 zoned site within the highly affluent bayside Melbourne suburb of Hampton, 13km south-east of the Melbourne CBD.

The freehold supermarket features a net lease to Woolworths and trades above benchmark being the only Woolworths supermarket in the primary catchment. The supermarket is adjoined by a collection of six retail shops which includes tenants like BWS and Bank of Queensland with substantial frontage to Hampton Street. The Supermarket and collection of shops are available individually or in one-line.

The property’s large landholding in the core of Hampton creates an exciting opportunity to further develop the site to potentially create a mixed-use development including a full-line supermarket and multi-level residential (STCA).

Dowers said: “Hampton Central represents an unparalleled offering within a highly exclusive bayside Melbourne suburb providing a secure income stream, with a net lease to Woolworths and strong future development potential. The high underlying land value underpins much of the asset’s value and the net lease to Woolworths provides excellent income protection for an incoming purchaser.

“The opportunity could not be repeated, with multiple titles meticulously aggregated to create a substantial contiguous Commercial 1 zoned landholding in the core of Hampton’s main retail strip. The Property offers outstanding future development potential and is bolstered by over $200 million in residential developments immediately nearby.”

Tong commented “With net migration expected to continue at record levels and the Property’s prime location in an affluent inner south-east suburb, we expect to receive strong interest from Asian capital. Activity from Asian investors picked up at the back end of 2023, with well over $100 million in large retail transactions being completed to this buyer category during that period.”

The offering comes off the back of the sale of Coles Hampton along Bluff Road which Stonebridge sold last year for $17.2 million representing a sharp yield of 2.70%. The sale is joined by an exclusive list of bayside Melbourne supermarket sales, all of which transacted at strong prices.