Coles Morwell in Melbourne’s Gippsland Region is set to test investor demand in the hotly contested neighbourhood shopping centre market.
JLL’s Stuart Taylor, Tom Noonan, and MingXuan Li in conjunction with Stonebridge’s Philip Gartland, Justin Dowers and Kevin Tong have been appointed to run the Expressions of Interest process on behalf of a Private Investor.
Coles Morwell is secured by a rare 15-year NET lease to Coles + Liquorland and is complemented by seven non-discretionary specialty stores. Morwell is 135km south-east of the Melbourne CBD.
The 5,259 sqm shopping centre is supported by at-grade and undercroft car park that provides 259 car parking spaces on a large 1.1-hectare site, strategically located only 250m from the Morwell Train station.
Justin Dowers, National Partner of Stonebridge said “We are anticipating significant interest in this asset, especially with the added benefit of 50% stamp duty concessions available for commercial property in regional Victoria. This is driving heightened demand for shopping centre assets in Victoria’s major regional towns.”
Senior Director of Retail Investments at JLL, Stuart Taylor said “Coles Morwell provides investors with the opportunity to secure a long-term lease to a strong trading Coles supermarket paying percentage rent and provides exceptional ongoing rental growth and income security”.
Stonebridge National Partner, Philip Gartland, said, “92% of the gross rent is secured by Coles, who in 2018 undertook a major $5 million store refurbishment which highlights the highly secure nature of this income stream and investment opportunity.”
Director of Retail Investments at JLL, Tom Noonan said “Morwell presents a unique investment prospect, showcasing a vendor-favourable lease structure that’s quite rare in the market today.”
Coles Morwell is being offered for sale via a Public Expressions of Interest Campaign closing on Wednesday, 10th April 2024 at 3:00pm (AEST).
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