This article is from the Australian Property Journal archive
THE first major blue-chip supermarket offering in of Fishermans Bend’s Montague precinct development has sold, in one of the country’s biggest strata-titled retail transactions this year.
Leased to supermarket giant Coles, the property spans the 1,752sqm ground floor of the brand-new 31-storey R.Iconic residential tower at 263 Normanby Road in South Melbourne.
Chris Kombi, Chris James and Ben Liu from Fitzroys managed the $17.5 million sale via an expressions of interest campaign, which drew in investors looking to back Australia’s largest urban renewal precinct.
“Local, national and international buyers all recognised the never-before-offered chance to invest in a brand-new blue-chip retail asset located in Australia’s largest urban renewal precinct,” said Kombi.
Coles and Liquorland have just begun trading from the supermarket, which boasts 90-metres of frontage to Normanby Road and Boundary Street.
“Inner-city Coles investment opportunities are extremely rare, let alone with this unrivalled level of trade growth potential. This campaign and the result were essentially a big show of faith from investors in the future of Fishermans Bend,” added Kombi.
“The R.Iconic development is one of the best new buildings in the precinct, which further drove the heated competition between buyers.”
The R.Iconic tower has already delivered 456 apartments, while with the second stage is set to bring a further 471 dwellings across 40 levels to 253 Normanby Road.
The supermarket sits directly across from the Montague Street Light Rail Station, within walking distance to Crown Casino, Southbank Promenade, the Melbourne CBD and Docklands.
With access also presented via major arterials including Citylink and the West Gate Freeway.
“The property is at the epicentre of the Montague precinct’s building boom, with 4,800 dwellings within only 500 metres of the property at various stages of completion, planning and construction,” said James.
“Coles undertook a feasibility study of the area and has made the astute decision to get into a prime location of the Montague precinct, within affluent South Melbourne, in a corner site on the cusp of a building boom. Investors clearly agreed on the strategic location and its trade prospects which will underpin the lease covenant.”
While Fishermans Bend itself is set for massive growth in the coming decades, with its current population of 4,354 people set to reach 80,000 residents and deliver employment for 80,000 by 2050, according to Melbourne City Council expectations.
With the property arm of Coles also divesting a major mixed-use apartment and retail site in Sydney for $44 million to the development of a new supermarket.
“The resilience of essential services and daily needs retail have been demonstrated resoundingly over the past few years, and this deal is the latest evidence of ongoing demand from investors for highly defensive assets deemed to be recession-proof,” added Liu.
“Income-producing assets purchased now in the current economic environment will prove to be very prudent investments over time.”
