Stonebridge and Colliers have exclusively brought the newly constructed Cranbourne West Shopping Centre and Surplus Land to market on behalf of Woolworths Group’s development business Fabcot.
Cranbourne West Shopping Centre is anchored by a Woolworths Supermarket and BWS liquor store, strategically located in one of the strongest-growing municipalities in Victoria, approximately 50 kilometres south-east of Melbourne CBD in Cranbourne West.
Constructed by Woolworths Group’s development business Fabcot in May 2020, the 6,051 square metre centre is anchored by a full-line Woolworths and BWS, complemented by one mini-majors, 11 specialty tenants, standalone medical precinct, one kiosk and ATM. The 100% fully-leased centre features an 84% weighting to national and chain retailers by GLA.
Stonebridge’s Justin Dower and Kevin Tong, in conjunction with Colliers’ James Wilson, Tim McIntosh, and Mike Crittenden are acting on behalf of Woolworths Group.
Colliers’ James Wilson said the opportunity follows an undersupply of core neighbourhood shopping centres offered to market across Australia in 2022, with only 44 neighbourhood transactions nationally, representing a 40% decrease year-on-year compared to 2021.
“Core neighbourhood shopping centres located in growth corridors of capital cities continue to be one of the most highly sought-after asset classes nationally. The non-discretionary weighting, inflationary hedged income and defensive WALE have proven resilient throughout the economic cycle and post-pandemic era, attracting a strong depth of private and institutional capital,” Wilson said.
Dowers added, “Melbourne is exceptionally well placed to benefit from a significant growth in migration following an easing in international border restrictions. Metropolitan neighbourhood shopping centres like Woolworths Cranbourne West are the best placed asset sector to benefit from this resurgence.”
Stonebridge’s Kevin Tong added that there had been a renewed engagement from international buyers, particularly from Asia, in recent months.
“Interest has rapidly picked up from Asian buyers with circa 40% of Victorian neighbourhood and supermarket transactions secured by off-shore investors based in Asia in 2022. It represents a strong return of international buyers who recognise the potential in the Australian retail market,” he said.
The 3.56-hectare site is 100% leased and offered with a new 10-year lease to Woolworths with options to 2082, and all speciality retailers have fixed annual rent increases of 4% and above and a weighted average lease expiry of eight years by GLA.
“What is unique about the offering is the 1.1 hectares of Surplus Land ready for immediate development with formal expressions of interest from national retailers for uses including supermarket, childcare, fast food and fuel,” McIntosh said.
Woolworths Cranbourne West Shopping Centre and Surplus Land is being offered for sale via an Expressions of Interest (EOI) campaign, closing at 2:00 pm (AEDT) Wednesday 15 March 2023.