Charter Hall acquires Tooronga Village for $79 million
Tooronga Village in Melbourne’s Glen Iris has been bought off-market for $79 million by Charter Hall Convenience Retail REIT (CCRF) from a trust managed by Newmark Capital.
About 10 kilometres south-east of the CBD, the 7724-square-metre shopping centre features a Coles, two mini-majors, 20 specialty shops, five kiosks, an ATM, a car wash and extensive basement parking.
Having served Melbourne’s inner east since the 1960s and hosted a Coles supermarket since 1968, the centre underwent a major redevelopment by Stockland in 2010.
Its strong trading performance and strategic position in a cluster of tightly held suburbs were key drivers of buyer interest.
“Tooronga Village is anchored by a highly productive Coles supermarket, and the centre sales productivity is above $17,000 per square metre, ranking it as one of the highest performing neighbourhoods in inner-metropolitan Melbourne,” Colliers national director Tim McIntosh says.
“Assets of this calibre are tightly held and rarely traded, particularly within Melbourne’s inner-eastern suburbs, making it a highly valuable investment proposition.”
The transaction reflects sustained institutional demand for convenience retail assets, with investors continuing to favour supermarket-anchored centres for their resilient income streams, strong trading performance and exposure to everyday consumer spending.
“High-quality neighbourhood shopping centres continue to attract significant investor interest, driven by strong population growth, resilient supermarket performance and limited incoming new supply,” says Stonebridge national partner Justin Dowers, who brokered the deal alongside McIntosh.
“The strong rental growth currently being experienced across the neighbourhood shopping centre sector is driving substantial capital reweighting into convenience retail, with this transaction. alongside the recent sales of Burwood Brickworks and Coles and ALDI Kilmore, representing more than $220 million of Melbourne neighbourhood centre transactions in the last two months.”
Through CCRF, Charter Hall has accumulated one of Australia’s largest portfolios of neighbourhood shopping centres and convenience retail assets. The purchase of Tooronga Village follows the recent purchases of Southport Park on the Gold Coast, Burwood One in Melbourne and Corio Village in Geelong.
