Warragul Lifestyle Centre site listed for mortgagee sale
The Warragul Lifestyle Centre, a large retail development site in Gippsland, has hit the market amid growing investor appetite for large-format retail, where limited supply and strong long-term returns continue to spur demand.
The site, in the suburb’s established bulky goods precinct, is one of the area’s larger development sites to be offered for some time, which is why it’s turning investors’ heads.
Set across two titles, the 31,894-square-metre corner landholding features more than 450 metres of dual frontage to Queens Road, multiple entry points, and visibility to over 21,000 passing vehicles each day.
Colliers is acting on behalf of the mortgagee in possession, with the property being sold through an expressions-of-interest campaign closing on August 13.
The property is available either as a single holding or as individual parcels, giving buyers flexibility to pursue a range of development options.
Concept plans outline major hub
Concept plans prepared by Leffler Simes envisage a 13,705-square-metre large-format retail development, while previous interest from national and listed retailers is expected to support future leasing demand.
Positioned within Warragul’s established large-format retail precinct, the site adjoins a retail centre anchored by Spotlight and Harvey Norman. It is also surrounded by national retailers including Bunnings Warehouse, Kmart, Harris Scarfe, Rebel Sport and Repco.
Colliers national director of retail middle markets Tim McIntosh says the offering comes at a time when well-located retail development opportunities remain limited.
“With core retail development stock remaining scarce, opportunities within proven yet undersupplied regional catchments continue to attract strong interest from retailers, developers and owner-occupiers,” he says.
“This offering provides the ability to establish within an already dominant precinct, anchored by major national brands and supported by a captive and growing trade area.”
Population surge underpins regional trade
There are also strong demographic and economic growth projections for the region, with Warragul’s population forecasted to increase from more than 23,000 residents in 2026 to almost 40,000 by 2036, while Baw Baw Shire is expected to accommodate around 16,300 additional dwellings by 2046.
Annual retail expenditure across the catchment is projected to grow by about 4.5 per cent a year, while the region’s gross regional product has increased from around $2.1 billion in 2019 to $3.31 billion in 2024.
Colliers executive, retail middle markets Will Heffernan says that regional retail markets have become increasingly attractive to national occupiers seeking locations with established infrastructure and retail amenities.
“The conversation around regional retail has changed significantly over the past five years,” Heffernan says.
“National occupiers are no longer simply following population growth – they’re looking for locations where infrastructure, residential development and established retail [amenities] are already working together. Warragul sits firmly in that category.”
Zoned land scarcity drives value
The campaign comes amid continued strength in Australia’s large-format retail sector. According to a recent CBRE report, the asset class has delivered annual investment returns of 12.8 per cent over the past decade, with returns forecast to remain around 11 per cent through to 2030.
Tight vacancy, limited new development opportunities, and rising rents have reinforced investor demand, while constrained supply of appropriately zoned land continues to support the value of established bulky goods precincts such as Warragul.
