Demand from major domestic and offshore institutions to acquire trophy retail assets in Victoria remains strong with stable yields and low vacancy rates fuelling the sector.
Two premium retail investments have simultaneously hit the market in Melbourne’s north-western suburbs under the guidance of Savill’s Ben Parkinson and Rick Silberman.
Highpoint Lifestyle Centre adjacent to GPT’s high performing and well-known Highpoint Shopping Centre is on the market, tipped to transact for close to $13 million, as well as Target in Sunbury with price estimations of $26 million.
The first property, located on Hampstead Road, is a large-format retail asset underpinned by several ASX-listed retailers, including Baby Bunting, Supercheap Auto and Woolworths Petrol.
Savill's Ben Parkinson said one of the appealing aspects of the Maidstone property, sandwiched between Footscray, Maribyrnong and Braybrook, was that it was zoned for mixed use and situated on a prime corner site of 19,020 square metres.
“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,” Parkinson said.
Savills expects that the properties 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,” Parkinson said.
The second location, Target Sunbury located on Evans Street, occupies a high-profile 5,150sq m building and is securely leased until early 2024.
“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,” Savills director of retail investments Rick Silberman said.
An independent planning report undertaken by KDC Planning and Development Consultants estimates that the land could be developed into about 400 to 600 dwellings, in addition to retail and office space.
Expressions of interest in both Target Sunbury and the Highpoint Lifestyle Centre close late May.