Coles-anchored Melbourne shopping village tipped to fetch $70m
Botanic Ridge Village, a shopping centre in Melbourne’s fast-growing south-east corridor, has come to market with price expectations of $70 million.
Coles supermarket is the major tenant of the 3.4-hectare landholding. It is signed to a 12-year lease and already generating additional income through turnover-based rent, highlighting the supermarket’s strong trading performance.
“This is a standout opportunity for capital seeking exposure to essential-services retail with secure income, limited competition and such strong forecasted sales growth,” says Colliers national director of retail middle markets Tim McIntosh. “In the current environment, it’s exceptionally rare.”
The centre is further supported by a diverse tenancy mix, including a childcare centre, medical services, a gym and food and beverage operators.
“Its mix of essential services, retail and community-focused amenities creates a highly liveable, future-proof environment,” McIntosh says. “The quality of Botanic Ridge Village sets a benchmark for neighbourhood centres and ensures it will remain an important asset for many years to come.”
Botanic Ridge is a relatively young suburb, established in 2009 and located around 45 kilometres south-east of Melbourne’s CBD. Continued residential development in the area has transformed it into a key growth pocket within the City of Casey, attracting families and underpinning demand for essential retail services.
It’s forecast to experience population growth of more than 8 per cent a year through to 2031, while over 3400 new dwellings are planned under the precinct structure plan (PSP). Neighbouring catchments, including the impending Devon Meadows PSP, are set to deliver a further 3300-plus dwellings.
“This pocket of Melbourne is experiencing extraordinary residential momentum, and that growth is driving a deep and resilient customer base,” says Stonebridge Property Group national director Justin Dowers. “Young families and sustained development activity all contribute to an exceptionally strong retail environment
“Opportunities to acquire assets of this calibre in such tightly held growth corridors are rare, and the ongoing uplift from surrounding PSP areas, including the future Devon Meadows PSP, will continue to support trading performance for years to come.”
This level of growth is increasingly driving investor focus towards neighbourhood shopping centres, particularly those anchored by major supermarkets and located within emerging residential precincts.
The centre also offers significant long-term upside, with surplus land providing scope for future expansion (subject to council approval).
Botanic Ridge Village is being jointly marketed by Colliers’ Tim McIntosh, Will Heffernan and James Wilson, together with Stonebridge Property Group’s Justin Dowers and Kevin Tong, via an expressions-of-interest campaign closing at 5pm AEST on Wednesday, April 29.
