Oreana Property Plots Trio of Neighbourhood Centres

Melbourne developer Oreana Property Group has swooped on a trio of sites in the city’s growing outer suburban areas, with plans to transform them into new neighbourhood shopping centres.

The group, founded by brothers Tony and Steven Sass, has moved on two sites in the city’s west, Tarneit and Werribee, as well as a site in Mickleham in the city’s north.

Oreana joint managing director Tony Sass said the group planned to deliver important new retail and essential amenities for the growing local communities in each suburb, including major supermarkets. 

“It’s crucial that new and expanding communities have the right foundations in place in order to be able to successfully flourish, and this includes access to quality services and amenities,” Sass said

“Our partnership with Development Victoria in Werribee is particularly exciting.”

In Werribee, Oreana has secured a vacant 3ha commercial site at the corner of Princes Highway and Newmarket Road, which forms part of Development Victoria’s new Riverwalk Estate. 

The state government’s development arm has been developing housing, infrastructure and open space in the estate since 2011. 

The proposed town centre within the recreation hub includes a major supermarket and specialty retail and services, complementing the existing primary school, early education centre and two new parks in the growing area.

Development Victoria head of property development Penny Forrest said Oreana would now develop the shopping centre for the estate, which has more than 2500 residents. 

“This new town centre will benefit the whole community and will attract more people to the area,” Forrest said.

“[It] has been part of the Riverwalk vision for over a decade and this is an exciting milestone for the development.”

▲ Development Victoria sold the Riverwalk Town Centre for $12.3 million to Oreana.

Meanwhile, in Tarneit, a new supermarket, childcare centre, specialty retail offering, medical centre, gym and restaurants, as well as 23 townhomes are being readied for the 14,000sq m site at 800 Derrimut Road.

In Mickleham, Oreana has also purchased a land parcel at the corner of Brossard Road and Elscott Boulevard within the broader Botanical Estate.

It intends to deliver a new 10,000sq m mixed-use precinct on the site, including a new full-line supermarket, childcare, specialty retail and dining options.

All three developments will cost a combined $160 million and are expected to create more than 500 jobs in construction and on completion.

Earlier this year, Oreana Property commenced construction on its Kalkallo Town Centre project in Melbourne’s north. 

The under construction mixed-use hub will feature a full-line Woolworths supermarket, 148-place childcare centre managed by Aspire, petrol station, medical centre, discount pharmacy, and food and beverage offerings when completed later this year.

Around the same time, the developer outlaid about $35 million for South Yarra Square, a strata-titled sandstone property at 177 Toorak Road, next to South Yarra train station.

It has mooted plans to develop the well-known South Yarra retail and office complex, once owned by the Hubay and Kornhauser families, into a new luxury hotel and wellness centre.

In Western Australia, the group is also pressing ahead with plans for a new community and retail precinct with a childcare centre in Butler.

The development, on a 4400sq m site at the corner of Marmion Avenue and Camborne Parkway, will be known as The Village Butler and is Oreana’s first in the state.

Relentless investor demand for neighbourhood shopping centres that are anchored by essential services retailers such as supermarkets meant capital values in the retail sub-sector surged by 20 per cent in 2021.

Rising interest rates—the major current topic of discussion among investors—is now expected to affect deal flow in retail investment over the remainder of the year.