This article is from the Australian Property Journal archive
ASCOT Vale’s Woolworths Metro in Melbourne’s inner north is up for grabs, as supermarket anchored retail continues to draw in investors.
At 1,894sqm, the supermarket is the largest in the Woolworths Metro format in Victoria and is ready to serve the Ascot Vale Community which is just 5km from the Melbourne CBD.
Justin Dowers, Rorey James and Kevin Tong of Stonebridge Property Group, along with Stuart Taylor, Tom Noonan and MingXuan Li from JLL Retail Investments will manage the sale via an expressions of interest campaign, on behalf of Pace Development Group.
“Woolworths have shown their commitment to the area through the signing of a new 12-year lease, which will see them adjoin their Dan Murphy’s store across the road, a strong sign of their confidence in Ascot Vale and this location specifically. They have been waiting for the right opportunity and these don’t come up often,” said Dowers.
The shopping centre, which is located on the ground floor of a mixed-use development, is comprised of a total of 2,300sqm of ground floor retail area, with three additional specialty stores.
The specialty stores will insure income diversity for the purchaser, with the asset providing a net annual return of $902,682.
“We are delighted to have delivered another successful mixed-use project of which a serious component comprises a Woolworths Supermarket,” said James Simpson, commercial director at Pace Development Group.
The mixed-use development includes 76 apartments, four townhouses and carparking for residents, as well as a dedicate carpark for the centre, with 64 secure basement carparks.
“We have delivered multiple projects of this calibre and are excited to offer yet another high-quality retail investment to market and provide the successful buyer with a secure and lucrative income stream stemming from one of Australia’s most well-known retail tenants,” added Simpson.
Woolworths Group Ltd has signed on to a 12-year lease, adjoining their Dan Murphy’s store which sits across the road.
“Investor sentiment for long lease assets has never been stronger, fuelled by a positive interest rate environment and flight to quality. If the start to 2021 is anything to go buy, investors have made it very clear of their strong desire to acquire quality income producing assets leased to non-discretionary, long leased national tenants – all credentials of which are found in this offering,” said Taylor, senior director of retail investments at JLL.
“Assets of this calibre are rarely offered to the market, with the property providing an investor the opportunity to own a brand-new supermarket in an affluent catchment, only 5kms from the Melbourne CBD,” concluded Taylor.
The expressions of interest campaign for the asset will close on 3 June.
