This article is from the Australian Property Journal archive
THE owners of Meadow Heights Shopping Centre in Melbourne’s northern suburbs are hoping to take advantage of the demand for convenience-oriented retail assets and value-add opportunities.
One of only a few neighbourhood centres to be offered in a Melbourne metropolitan location in the past two years, the IGA-anchored asset is positioned 19 kilometres from the CBD includes 24 specialty stores including a pharmacy, newsagent, bakery, hair salon and several popular take-away options.
The centre has a total floor area of 5,384 sqm and 253 car parks, while demand is expected to come from buyers attracted to the expansive 32,000 sqm land parcel.
“We are seeing a direct correlation between consumers wanting to shop locally and efficiently and the sharp increase in investor demand for shopping centres that offer this type of convenience,” said Savills’ Steven Lerche, who is marketing the asset with colleague Rick Silberman.
Neighbourhood centre yields have for the first time have firmed below sub-regional yields, according to BIS Oxford Economics, averaging 6.3% with some sales achieving below 5.0%. Convenience retail centres, neighbourhood centres and large format centres have underpinned the rebound in retail transaction volumes throughout this year.
Silberman explains the Victorian retail investment market has seen most neighbourhood centre transactions taking place in regional locations.
“Given the Melbourne metropolitan location of Meadow Heights, we expect interest will be strong for this reason alone.”
The large land offering includes multiple pad sites and an adjacent 9,000 undeveloped block of land with flexible commercial 1 zoning and separate titling.
Convenience shopping centres have proven to be a standout within the retail investment space over the course of the pandemic period with several recent neighbourhood centre transactions reflecting record results.
Expressions of interest close 14th October.
The offering comes within days of marketing kicking off for the Riverwalk Town Centre site in the western suburb of Werribee, in the first campaign for a metropolitan Melbourne neighbourhood shopping centre development site in 2021.
