Developers snap up Mornington Village Shopping Centre
Angelo Property Group and Rathstation Group will team for another development after snapping up the Mornington Village Shopping 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.
A $150m revamp is planned, likely with high density residential.
Elsewhere in Melbourne, Angelo and Rathstation are developing a Woolworths Metro at 365 Smith Street, Fitzroy, a Greensborough shopping centre and mixed-use project at Sunshine.
Mornington Village sells again
With 7963 square metres of lettable area and 259 car parks, Mornington Village was offloaded by an Asia-based syndicate trading as the entity Newpac Investment Group, which paid $39.38m in May, 2018.
Since then, anchor occupier Woolworths chose not to renew its lease; it is believed to be looking for a space elsewhere in Mornington.
A rental agreement to another supermarket tenant, Aldi, meanwhile, has become month to month.
The complex also contains mini-major tenancies, leased to The Reject Shop, Pharmasave and a medical centre (story continues below).
There are 14 specialty shops and three kiosks too.
“The asset presented a value-add/repositioning proposition given Woolworths is intending to vacate in September,” Stonebridge’s Justin Dowers, who marketed the shopping centre with Kevin Tong, said.
“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,” according to the executive.
“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,” Mr Tong added.
“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,” he said.
The deal comes a year since the former Mornington Cinemas at 1 Main St traded for $3.72m to an investor.
Not long earlier, the suburb’s Barkly Square – offered as nine individual shops – sold to one buyer for $12.8m.
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