Melbourne-based residential developer, ID Land is preparing to launch an Expressions of Interest campaign for the sale of the Truganina Central Shopping Centre development site in Melbourne’s west. CBRE’s Justin Dowers, Mark Wizel and Kevin Tong have been appointed to steer the campaign, which represents the first Melbourne metropolitan shopping centre site offering for 2019.
The 2.2ha masterplanned site is earmarked for a full-line Coles supermarket and a range of specialty shops with commercial facilities, providing a total lettable area of 7,390 m2. It will cater to significant forecast population growth in the immediate area, with Truganina emerging as one of Victoria’s fastest growing suburbs underpinned by a range of surrounding developments from groups such as Stockland and Villawood.
“Coles has pre-committed to a 15-year lease with 30 years of options, meaning the offering is significantly de-risked,” Dowers said.
“The mixed-use and residential development potential of the surrounding land will be highly beneficial for supermarket trade, and the presence of Coles will also enhance the appeal of the residential product to be developed on the balance of the estate”, he said.
Macroplan Dimasi data highlights that Truganina’s population has grown by more than 100% since 2011 and is forecast to double between now and 2031. The area’s demographic profile is also shifting, supported by a 70% rise in median houses prices during the past eight years.
“There has been growing buyer demand for this style of product, given the strong performance of retail centres with a bias towards non-discretionary spending,” Dowers said.
ID Land Director Matt Belford said “The new Coles will be within walking distance of all our Elements residents, providing easy access to everything from household staples to premium products”
“The decision to secure the anchor retail offering of a full-line Coles supermarket at the Neighbourhood Activity Centre in Elements is reflective of ID Land’s desire to provide premium amenities and unprecedented convenience for all residents and make sure the community is looked after for many years to come.”
The ID Land offering follows the $51.50 million sale by Woolworths earlier this year of its town centre site in Mernda.
In June, ID Land acquired two significant new sites in Gisborne and Armstrong Creek worth a total end value of more than $400 million. The acquisitions underpin the developer’s continued diversification strategy which has seen the company grow its portfolio to more than $2 billion across all residential sectors in Melbourne and targeted regional locations taking the developer’s combined portfolio under management to more than $2 billion.
“Victoria’s property market remains strong and we believe that despite the many recent regulatory changes, the outlook remains positive in the short to medium term. “Our population growth and net migration continues to place pressure on housing so we believe there will continue to be demand for well-priced, quality product in areas that are close to the CBD or surround existing transport and activity nodes in the establishing growth corridors,” said Belford.
