Substantial site for sale in one of Australia’s fastest growing areas
Victoria’s biggest permit-approved large format retail site is set to hit the market amidst increased demand and expansion within the sector.
Colliers International’s Tom Noonan and Tim McIntosh, in conjunction with Savills’ Keith Kooloos and Tim Casanelia, have been appointed to offer for sale or lease the Melton Mega Centre Site, a 155,646sqm (15.5Ha) site on the corner of Melton Highway and Federation Drive in Melton.
“The Melton Mega Centre site represents the largest permit approved large format retail site in greater metropolitan Melbourne and at completion will be the second largest LFR centre in Victoria,” Mr Noonan said.
“The site has an approved permit allowing for 50,000sqm of LFR and 1,441 car bays across the main body of the site, with an adjoining convenience site of 6,391sqm with plans and permits for a petrol station and two fast food restaurants.
“Located at the gateway to Melton, this substantial development site of 15.5ha is Australia’s biggest LFR site currently on market."
The site is positioned at the gateway to Melton, at the junction of major arterial Melton Highway and Federation Drive and less than 1km from Western Freeway, which acts as the main arterial between the Melbourne CBD, broader western Melbourne and Ballarat.
“The City of Melton is one of the fastest growing municipalities in Australia, with the current population growth rate being the second fastest of all Victorian local government areas,” Mr Kooloos said. “The main trade area population is currently estimated to be in excess of 100,000 residents and is forecast to reach 158,260 by 2026."
“Given the significant growth taking place in Melton, there is a strong requirement for homemaker-type merchandise in the area. It is estimated that retail spending in quantum terms will double to $418million annually by 2026, with current retail spending in the trade area approximately $2,200 per capita.
“The Melton Mega Centre Site provides purchasers with an opportunity to acquire a newly permitted large format/service station and convenience development of significant scale. The extensive planning and approvals process has already been undertaken, with permits in place for 50,000sqm of LFR over three stages, providing the opportunity for a future owner to commence construction immediately."
Offered for sale in addition to the permit approved LFR site is an adjoining 6,391sqm convenience site that has been subject to intense interest from a number of national and international operators.
Mr Noonan said growth in retail spending over the past year had been led by the household goods sector. The performance of the large format retail sector was largely driven by the health of the residential construction market and in turn the strength of demand for household goods. The improvement in retail turnover in the household goods category has also improved demand for large format retail.
“Unsurprisingly, the strength within the large format sector has led to the expansion of many national brands, with many seeking new locations in key growth corridors, however supply levels have been declining into 2016, particularly in Victoria which has led to capital rate compression within the asset class,” Mr Noonan said.
Mr Koolos said the Melton corridor had been identified as one of the most substantial areas of growth in Victoria. Its expansion which includes 10 new suburbs forms part of the Victorian State Government’s strategy to manage the population and economic growth of the Melbourne Western Region.
“This bodes particularly well for large format retail developments within the region due to the continued high level of housing activity over the next ten years and beyond,” he said. “The overall offering that is Melton Mega Centre Site represents a diversified retail development opportunity with potential pre-commitments for the convenience site and permit approval allowing immediate development in one of Australia’s fastest growing locations."
The property is offered for sale or lease by Expressions of Interest closing Thursday July 21, 2016 at 4pm.
Above: Artist impression