Chirnside Lifestyle Centre l 266 Maroondah Highway, Chirnside Park
Brand new 100% leased large format retail centre in inner Melbourne.
In 2020 German supermarket group Kaufland exited the Australian market before commencing trade, in the process selling the portfolio of nine prime retail land holdings it had secured across Australia. In less than 2-years, the fourth site from the Kaufland portfolio sell-down has been redeveloped into a prime asset and is now being offered to the market for sale amid strong expectations.
Chirnside Lifestyle Centre is a brand new large format retail centre developed by joint venture partners Troon Group and MaxCap Group. Due for imminent completion in November 2022, the 11,000sqm centre is 100% pre-leased to prominent national daily needs and large format retailers.
The tenancy mix includes 86% weighting to national and chain tenants and a defensive weighted average lease expiry (WALE) of 7.7 years by income. The site presents an outstanding long term opportunity occupying 3.5ha of prime Commercial 1 zoned land in a strong catchment.
Located 32km east of the Melbourne CBD, prominently positioned on Maroondah Highway with 38,000 cars passing daily. Chirnside Park has experienced 14.6% growth in housing values over the last 12-months with a median house price of $917,500. The development follows the recent sale of three ex-Kaufland sites in Queensland by developer Gordoncorp. Included in the Queensland sales was the recently developed Burleigh Home & Life large format retail centre, selling for $72.5 million to a local private investor. An expressions of interest campaign for Chirnside Lifestyle Centre is being managed by Colliers’ Tim McIntosh, Mike Crittenden and James Wilson in conjunction with Stonebridge Property Group’s Justin Dowers, Kevin Tong and Phillip Gartland.
Mr McIntosh said “Chirnside Lifestyle Centre closely aligns with private and institutional investors’ growing requirement for high growth investments, driven by fixed annual increases and attractive net lease structures to stable blue-chip national tenants”.
Mr Dowers said “The brand new centre presents a defensive tenancy profile anchored by daily needs retailers including Harris Scarfe, Chemist Warehouse and Baby Bunting and underpinned by one of the largest commercial 1 zoned land holdings in a five kilometre radius, providing ultimate long-term flexibility”.
Managing Director of Troon Group, Tom McInerney commented “We have been overwhelmed by the retailer response to Chirnside Lifestyle Centre, with the centre 100% leased 12-months ahead of our expectations. We are excited to provide the community with the retail amenity they have been asking for.”
Head of Direct Investment at MaxCap Group, Simon Hulett said “Chirnside Lifestyle Centre represents a highly defensive retail investment backed by long leases to national tenants with significant depreciation benefits, whilst also being underpinned by a substantial Commercial 1 zoned land holding.”
Chirnside Lifestyle Centre is for sale via an Expressions of Interest campaign closing Thursday 20 October and is expected to attract interest in the mid $40 million range.