A developer partnership has sold a brand-new freestanding Hungry Jack’s and Caltex-anchored convenience centre for $13.1 million.

The asset, completed in 2020, is located in the high-profile Plenty Road area in the growing suburb of Mernda in north-west Melbourne.

The centre provided a 13.1-year WALE (by income) and significant depreciation benefits.

At a glance:

• A Hungry Jack’s and Caltex-anchored convenience centre for $13.1 million at an initial yield of approximately 4.8 per cent.
• The Mernde Convenience Centre at 1407-1409 Plenty Road has a WALE of 13.1 years. 
• The sale was brokered by  JLL Senior Director of Retail Investments Stuart Taylor and Director Tom Noonan.

Made up of a trio of property veterans in James Hunt, Brett Tooley and Jim Lamb, the developer specialises in the development of convenience retail assets, with a focus on properties anchored by fuel and fast-food tenancies. 

Mr Hunt said the group had a strong pipeline of convenience retail development projects and would be looking for further acquisitions over the next 6-12 months.

Source: JLL

“We have full confidence in this sector and the strong result achieved in our Mernda project reinforces our investment and development philosophy," he said.

JLL Senior Director of Retail Investments Stuart Taylor, who marketed the property with JLL Director Tom Noonan, said there had been no shortage of interest for the asset throughout the campaign.

“We received a total of 14 EOI’s for the Mernda asset, with pricing achieved above the vendor’s expectations, demonstrating the level of demand for commercial property assets which are considered defensive in the current environment," he said.

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