Stonebridge and Colliers are pleased to exclusively bring the newly constructed Cranbourne West Shopping Centre and Surplus Land to market on behalf of Woolworths Group’s development business Fabcot.

Cranbourne West Shopping Centre is anchored by a strong performing Woolworths Supermarket and BWS liquor store, strategically located in one of the strongest-growing municipalities in Victoria, approximately 50 kilometres south-east of Melbourne CBD in Cranbourne West.

Constructed by Woolworths Group’s development business Fabcot in May 2020, the 6,051 sqm Centre is anchored by a full-line Woolworths and BWS, complimented by one mini-majors, 11 specialty tenants, standalone medical precinct, one kiosk and ATM. The 100% fully-leased Centre features an 84% weighting to National and Chain retailers by GLA.

Stonebridge’s Justin Dower and Kevin Tong, in conjunction with Colliers’ James Wilson, Tim McIntosh, and Mike Crittenden are acting on behalf of Woolworths Group.

Colliers’ James Wilson said the opportunity follows an undersupply of core neighbourhood shopping centres offered to market across Australia in 2022, with only 44 Neighbourhood transactions nationally, representing a 40% decrease YOY compared to 2021.

“Core neighbourhood shopping centres located in growth corridors of capital cities continue to be one of the most highly sought-after asset classes nationally. The non-discretionary weighting, inflationary hedged income and defensive WALE have proven resilient throughout the economic cycle and post-pandemic era, attracting a strong depth of private and institutional capital,” said Mr Wilson.

Justin Dowers said “Melbourne is exceptionally well placed to benefit from a significant growth in migration following an easing in international border restrictions. Metropolitan Neighbourhood

Shopping Centres like Woolworths Cranbourne West are the best placed asset sector to benefit from this resurgence.

“The scarcity of quality neighbourhood shopping centres offered to the market in Melbourne over the last few years has driven a significant pent-up demand. We expect strong interest from a breadth of buyer profiles – local, private, developers, institutional and syndicate.”

Stonebridge’s Kevin Tong added that there had been a renewed engagement from international buyers, particularly from Asia, in recent months.

Stonebridge Asia Practice Partner, Kevin Tong recently commented on COMMO, “Since international travel in China opened up in December and early in the new year, the increased amount of enquiry from investors in China has been clearly noticeable. New and Old investors who have been stuck in China and unable to travel over the last 2 years, have jumped on the opportunity of international travel and many have earmarked Australia as the place to be.

“Interest has rapidly picked up from Asian buyers at the back of the pandemic, with circa. 40% of Victorian neighbourhood and supermarket transactions secured by off-shore investors based in Asia in 2022. It represents a strong return of international buyers who recognise the potential in the Australian retail market,” said Mr Tong.

The 3.56-hectare site is 100% leased and offered with a new 10-year lease to Woolworths with options to 2082, and all speciality retailers have fixed annual rent increases of 4% and above and a weighted average lease expiry of 8 years by GLA.

“Cranbourne West Shopping Centre is anchored by the only full-line Woolworths supermarket in the Main Trade Area, servicing a rapidly expanding Main Trade Area population of 39,518 that is growing 38% faster than the metropolitan Melbourne average to 2041,” said Colliers’ Tim McIntosh.

“What is unique about the offering is the 1.1 hectares of Surplus Land ready for immediate development with formal expressions of interest from national retailers for uses including supermarket, childcare, fast food and fuel. The surplus land benefits from direct frontage to 17,000 cars passing daily, with prominent exposure to both Hall and Evans Road.” Mr McIntosh added.

Woolworths Cranbourne West Shopping Centre and Surplus Land is being offered for sale via an Expressions of Interest (EOI) campaign, closing at 2:00 pm (AEDT) Wednesday, 15th March 2023.

To request a copy of the Information Memorandum please contact one of the marketing agents Stonebridge’s Justin Dower and Kevin Tong, in conjunction with Colliers’ James Wilson, Tim McIntosh, and Mike Crittenden via the contact details below. 

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