Mornington Village transacts and is set for a $150m redevelopment

18 May 2022

Mornington Village Shopping Centre has transacted via an off-market deal through Stonebridge Property Group, representing the first Victorian neighbourhood shopping centre transaction for 2022.

The double storey neighbourhood shopping centre sold via an off-market campaign to joint venture partners Angelo Property Group and Rathstation Group, who are property development groups that focus on the development of commercial and residential properties and intend to enhance and redevelop the Centre.

The two level mall on a 1.31 hectare Commercial 1 zoned block bound by Main and Cromwell streets, Waterloo Place and Barrett Lane, and also with an open air car park west of this island, is speculated to be trading for close to $30 million, which would reflect a circa seven-plus per cent fully let net yield.

Stonebridge Property Group Justin Dowers and Kevin Tong acted on behalf of the private owners in the transaction.

The asset represented a value add/repositioning proposition given Woolworths are intending to vacate in September 2022 and Aldi being on a month-to-month lease. The incoming purchasers will have several options to completely redevelop the site as a mixed-use centre or upgrade existing facilities and attract new anchors and tenants.

Justin Dowers commented, “Mornington Village has experienced some recent challenges with one of the major tenants (Woolworths) looking to relocate within Mornington. Given the position and size of this site within Mornington, we needed to identify the opportunity this presented to attract new retailers and how the centre can be repositioned to morph into a mixed-use centrepiece of Mornington.”

“The centre sits on 1.3 hectare commercial 1 zoned island site in the centre of Mornington, being the commercial heart of the Mornington Peninsula. We believe the purchases will be able to attract top tier tenants across a multitude of sectors and deliver a commercial asset that Mornington Peninsula residents and visitors will be proud of”

Kevin Tong added, “Mornington has continued to witness unprecedented growth as more and more residents are moving to the seaside location, given the flexibilities of the “working from home” changes off the back of covid-19. As a result, there is increasing demand from various tenant options to be within the catchment, providing a vast array of repositioning opportunities for Mornington Village shopping centre.”