Two premium retail investments hit the market in Melbourne’s north-western suburbs. Highpoint Lifestyle Centre adjacent to GPT’s high performing and well-known Highpoint Shopping Centre is on the market, as well as Target in Sunbury. Savill’s Ben Parkinson and Rick Silberman have been appointed to market both properties via international expressions-of-interest campaigns.
The agents said the assets were expected to fetch $13 million and $26 million respectively, with enquiry from a diverse range of buyer groups anticipated, including local and offshore privates, listed and unlisted funds, syndicators and developers.
Leased to Target on an initial 15-year lease, Target Sunbury occupies a high-profile 5,150m2 building at 114-126 Evans Street and has convenient access to 308 at grade car parks. It is securely leased until March 2024 with further options to renew.
“This listing represents a quality single-tenant, minimal-management investment with the security of a Wesfarmers-backed covenant. It is located on a highly visible corner in the heart of Sunbury’s retail activity centre, which will be a key selling point, as Sunbury is considered to be a key population centre driving the City of Hume’s economic growth and community.” Silberman said.
Target Sunbury
The Highpoint Lifestyle Centre at 98-108 Hampstead Road, Maidstone, which is located adjacent to Bunnings and Highpoint Shopping Centre, is a large-format retail asset underpinned by several ASX-listed retailers, including Baby Bunting, Supercheap Auto and Woolworths Petrol.
Parkinson said one of the many appealing aspects of the investment was that it was zoned for mixed use and situated on a prime corner site of 19,020sqm.
“This high-quality retail asset provides the flexibility of secure existing income via the tenure of quality ASX-listed retailers, in addition to its medium-term development potential. The underlying mixed-use-zoned land allows for an abundance of future alternative uses and offers various possibilities, including more intense development incorporating office, hotel, retail or residential.” he said.
An independent planning report undertaken by KDC Planning & Development Consultants estimates that the land could be developed into about 400 to 600 dwellings, in addition to retail and office space.
Parkinson said prospective buyers were likely to be interested in the versatility of the development upside in the immediate catchment area.
“The Summus apartment development directly opposite Highpoint Lifestyle Centre is a 15-level residential project and the Marque development at 68 Wests Road was approved for an 18-level high-rise,” he said.
Expressions of interest in both Target Sunbury and the Highpoint Lifestyle Centre close on the 30 May.
