Coles sells permit-ready shopping centre site

Sandhurst Retail will start building Botanic Ridge Village immediately.

Coles has sold a permit-ready shopping centre site at Botanic Ridge, a 12 year old suburb south east of Melbourne.

Sandhurst Retail is the buyer.

The 2.58 hectare block, 2-30s Hummingbird Drive, traded for about $14 million.

The permit allows for a 6000 square metre shopping centre – Botanic Ridge Village – about 60 per cent of which will be leased to Coles (this space is also the only full-line supermarket allowed in the Botanic Ridge Precinct Structure Plan).

Coles Development Group also offered a 9046 square metre pad site appropriate for a mixed-use project.

Colliers International’s Tim McIntosh, Mike Crittenden and James Wilson said the result “is a clear indication of the confidence for neighbourhood centre sites”.

Mr McIntosh added lack of supply is putting upward pressure on pricing; there were only six Victorian neighbourhood shopping centre transactions last year (story continues below).

Record low cost is another demand driver, according to the executive.

Mr Crittenden said “2020 saw very limited retail site opportunities, as a consequence developers have an insatiable demand to re-establish their pipeline, particularly for retail sites with a pre-committed anchor tenant.

This part of Botanic Ridge is about 55 kilometres from town.

Sandhurst Retail managing director Vivek Subramanian said the company targets growth areas.

“Our focus on Victoria and Queensland growth corridors motivated us to acquire the permit-approved neighbourhood centre, on which we will soon commence construction, to complement our longer-term pipeline of neighbourhood, sub-regional and home-maker centres,” he added.

“The south east region is experiencing rapid growth and expansion, particularly in the wake of recent government grants and population spread, so wee see the site – and its key anchor tenants – as an important amenity for the area”.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco