Metropolitan Melbourne large format retail centre offered for sale by Stonebridge

Stonebridge Property Group is pleased to exclusively bring to market the Sunbury Showrooms, a fully leased metropolitan Melbourne large format retail (LFR) centre. The high growth centre is prominently positioned in the tightly held Sunbury LFR precinct, opposite a high-performing Bunnings Warehouse and comes with 143 car spaces on title. Anchored by The Good Guys and supported by a strong national tenant profile including Repco, Total Tools, Petstock and Godfreys, the Property offers a highly secure income stream with strong rental growth.

Sunbury Showrooms resides on a substantial 12,140 sqm* corner landholding on the main thoroughfare into Sunbury with 221 m* of total frontage. Sunbury’s population has grown and continues to grow rapidly with 4.85% p.a. population growth expected to 2041 adding over 60,000 residents to the catchment to the great benefit of the Centre.

The offering follows a string of strong LFR transactions including the likes of Chirnside Lifestyle Centre which sold for $50.4 million on a 5.26% yield and Crossroads Homemaker Centre which sold for $282 million on a 4.62% yield. LFR continues to be a highly desirable and resilient asset class having been a major winner during COVID and continuing to perform strongly post the pandemic, the latter of which is driven by record levels of net migration.

LFR Centre vacancy levels have fallen to a record low of 3.5% according to recent reports from the Large Format Retail Association and Deep End Services.

Mr. Dowers commented “The national tenant profile of Sunbury Showrooms presents investors with an excellent opportunity to acquire a secure and defensive income stream with strong rental growth. As the population of Sunbury rapidly expands, we expect this to correlate with strong retail spending growth.

Mr. Tong commented “LFR Centres have gone from strength to strength, performing well both during COVID and post COVID as a result of increased home spending and now record migration. The strength of LFR performance coupled with Sunbury’s significant population growth will make Sunbury Showrooms a highly attractive asset for a variety of groups.”

Sunbury Showrooms is both situated in a tightly held precinct and has minimal competition with the next closest LFR centre being Taylors Lakes Homemaker Centre which is over 12 km away. The Centre also benefits greatly from being opposite a high performing Bunnings which creates strong synergy and substantially increases customer draw.”

Stonebridge Property Group’s Justin Dowers and Kevin Tong have been exclusively appointed to sell the Property.