Stonebridge Property Group’s listing of Rivergum Village Shopping Centre will test the market for a non-discretionary and highly convenient neighbourhood centre in metropolitan Melbourne.
Rivergum Village Shopping Centre is strategically located in the northern growth corridor of Melbourne, only 20 km from the CBD within the rapidly growing City of Whittlesea. The Centre is situated on a high-profile triple-fronted commercial 1 zoned site of 22,320m2 along Plenty Road.
The convenience-focused neighbourhood shopping centre is anchored by a Woolworths supermarket and supported by nine specialty shops in addition to a medical centre and pharmacy, along with EG group, Guzman Y Gomez and childcare pad sites. The Centre was recently expanded with a new childcare centre on a new 10-year lease and a future Guzman Y Gomez on a new 15-year lease.
Stonebridge Property Group’s Justin Dowers and Kevin Tong will be offering the neighbourhood shopping centre via an international expression of interest campaign.
Justin Dowers said: “Rivergum Village sits on a very commanding piece of Melbourne metro land. The underlying land value would represent in the order of 70% of the total capital value of the asset. This provides a great future opportunity, and it would likely see the land value exceed the capital value within a 10-year investment horizon.”
“An opportunity that commercial property provides investors with at the moment is a hedge against inflation. Rivergum Village is very well positioned in this regard given 97% of the tenants are on net leases with either fixed annual rental increase or percentage rent provisions,” said Dowers.
Kevin Tong added: “Rivergum Village offers a combination of both income security and growth, with minimal specialty tenants and long leases to key anchors including the fast food, childcare and petrol station and with Woolworths trading close to the percentage rent threshold and the fixed increases from the other tenants, it provides investors with a long-term growth investment.”
“Furthermore, given the recent lack of supply of comparable investments, our Asia Practice team will be anticipating strong Asian interest for the asset, given the metropolitan location and significant land parcel,” said Tong.
In the last 12 months seven neighbourhood shopping centres have transacted in Victoria, however, only two of these were offered on market.