Corner of Plenty Road & Development Boulevard, Mill Park VIC 3082
Stonebridge Property Group’s listing of Rivergum Village Shopping Centre will test the market for an investor favourite, a non-discretionary and highly convenient neighbourhood centre in metropolitan Melbourne.
The convenience focused neighbourhood shopping centre is anchored by a Woolworths supermarket and supported by 9 specialty shops in addition to a medical centre + pharmacy, and EG group, Guzman Y Gomez and childcare pad sites. The Centre was recently expanded with a new childcare centre on a new 10-year lease and a future Guzman Y Gomez on a new 15-year lease.
Stonebridge Property Group’s Justin Dowers and Kevin Tong will be offering the neighbourhood shopping centre via an international expressions of interest campaign.
Rivergum Village Shopping Centre is strategically located in the northern growth corridor of Melbourne, only 20 km* from the CBD within the rapidly growing City of Whittlesea. The Centre is situated on a highprofile triple-fronted commercial 1 zoned site of 22,320 sqm along Plenty Road.
NATIONAL PARTNER JUSTIN DOWERS COMMENTED THAT “RIVERGUM VILLAGE SITS ON A VERY COMMANDING PIECE OF MELBOURNE METRO LAND. THE UNDERLYING LAND VALUE WOULD REPRESENT IN THE ORDER OF 70% OF THE TOTAL CAPITAL VALUE OF THE ASSET. THIS PROVIDES GREAT FUTURE OPPORTUNITY, AND IT WOULD LIKELY SEE THE LAND VALUE EXCEED THE CAPITAL VALUE WITHIN A 10 YEAR INVESTMENT HORIZON.”
“AN OPPORTUNITY THAT COMMERCIAL PROPERTY PROVIDES INVESTORS WITH AT THE MOMENT IS A HEDGE AGAINST INFLATION. RIVERGUM VILLAGE IS VERY WELL POSITIONED IN THIS REGARD GIVEN 97% OF THE TENANTS ARE ON NET LEASES WITH EITHER FIXED ANNUAL RENTAL INCREASE OR PERCENTAGE RENT PROVISIONS.” ADDED MR. DOWERS.
KEVIN TONG COMMENTED THAT “RIVERGUM VILLAGE IS A COMBINATION OF BOTH INCOME SECURITY AND GROWTH, WITH MINIMAL SPECIALTY TENANTS AND LONG LEASES TO KEY ANCHORS INCLUDING THE FAST FOOD, CHILDCARE AND PETROL STATION. FURTHERMORE, WITH WOOLWORTHS TRADING CLOSE TO THE PERCENTAGE RENT THRESHOLD AND THE FIXED INCREASES FROM THE OTHER TENANTS IT PROVIDES INVESTORS WITH A LONG-TERM GROWTH INVESTMENT.”
“FURTHERMORE, GIVEN THE RECENT LACK OF SUPPLY OF COMPARABLE INVESTMENTS, OUR ASIA PRACTICE TEAM WILL BE ANTICIPATING STRONG ASIAN INTEREST FOR THE ASSET, GIVEN THE METROPOLITAN LOCATION AND SIGNIFICANT LAND PARCEL.”
In the last 12 months seven (7) neighbourhood shopping centres have transacted in Victoria, however only two of these were offered on market.