Tooronga Village shopping centre, in Melbourne’s affluent suburb of Glen Iris has changed hands in an off-market transaction, with Charter Hall’s Convenience Retail REIT (CCRF) acquiring the metropolitan neighbourhood shopping centre for $79,000,000 from a trust managed by Newmark Capital.
Located approximately 10 kilometres south-east of the Melbourne CBD, Tooronga Village is a 7,724 sqm neighbourhood centre anchored by Coles, alongside two mini-majors, 20 specialty stores, five kiosks, an ATM, car wash and extensive basement parking.
The transaction was negotiated by Stonebridge Property Group’s Justin Dowers and Kevin Tong, alongside Tim McIntosh and Will Heffernan of Colliers.
Colliers’ National Director Tim McIntosh said Tooronga Village’s strong trading fundamentals and strategic positioning within Melbourne’s inner east attracted Charter Hall’s interest.
“Tooronga Village is anchored by a highly productive Coles supermarket, with the centre sales productivity above $17,000/sqm, ranking the centre as one of the highest performing neighbourhoods in inner metropolitan Melbourne,” Mr McIntosh said.
“Assets of this calibre are tightly held and rarely traded, particularly within Melbourne’s inner eastern suburbs, making it a highly valuable investment proposition.”
Stonebridge National Partner, Justin Dowers, said the sale reflected the continued institutional demand for dominant convenience retail assets within affluent metropolitan catchments.
“High-quality neighbourhood shopping centres continue to attract significant investor interest, driven by strong population growth, resilient supermarket performance and limited incoming new supply,” Mr Dowers said.
“The strong rental growth currently being experienced across the neighbourhood shopping centre sector is driving substantial capital reweighting into convenience retail, with this transaction alongside the recent sales of Burwood Brickworks and Coles & ALDI Kilmore representing more than $220 million of Melbourne neighbourhood centre transactions in the last 2 months.”
Originally developed by Stockland, Tooronga Village forms part of a broader strata-titled mixed-use precinct incorporating residential apartments and commercial offices. The predominantly single-level centre occupies a prominent corner position servicing one of Melbourne’s most affluent and densely populated catchments.
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