Strong investor demand drives competitive campaign for prime Large Format Retail asset in Melbourne’s south-east.
Spotlight Property Group has acquired the Moorabbin Retail Centre in a deal that underscores the strength of investor demand for metropolitan retail assets. The sale, brokered by Colliers, reflects a passing yield of 6.13 per cent and follows a highly competitive campaign that drew more than 150 enquiries and seven first-round offers.
Located at 405 Boundary Road within the Moorabbin Airport precinct, the fully leased Large Format Retail (LFR) centre spans 3,685 square metres of gross lettable area on a prominent 12,220 square metre corner site.
Anchored by global sporting goods giant Decathlon, which occupies 67 per cent of the centre, and complemented by national market leader National Tiles, the property benefits from its strategic positioning within one of Victoria’s designated activity centres, approximately 28 kilometres south-east of Melbourne’s CBD.
The result highlights the scarcity of quality retail investment opportunities in metropolitan Melbourne and the continued appetite for LFR assets in established growth corridors. The transaction includes a six-year leaseback to Decathlon and is underpinned by a tri-party leasehold structure with a ground lease expiring in 2048, reinforcing long-term income security.
Tim McIntosh, National Director | Retail Middle Markets at Colliers, said, “Investors are actively seeking secure, income-producing assets in established growth locations, and this sale is a clear reflection of that demand. The strength of the tenancy profile and the long-term ground lease structure were key drivers of engagement.”
Will Heffernan, Colliers Executive | Retail Middle Markets, added, “Moorabbin is a key activity centre with strong connectivity and a growing catchment. Large Format Retail continues to perform well, and assets like this, with blue-chip tenants and strategic positioning, are highly sought after. The result demonstrates confidence in the sector and the resilience of retail in core metropolitan markets.”
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