McDonald’s sells growth corridor town centre site
EXCLUSIVE
After slicing a corner for itself, McDonald’s has sold the balance of a site earmarked, with another across the road, to be the Cranbourne East Neighbourhood Town Centre.
The fast food chain is banking $8.29 million for the 1.843 hectare former farm fronting Adrian Street and Ballarto Road.
It paid $6.3m in early 2018 before subdividing a 2685 sqm portion at the intersection of those roads for a restaurant.
Colliers’ Tim McIntosh and Mike Crittenden marketed the property both times.
Eleven offers came in following the most recent campaign, in which it was advertised as Lot 2, 2 Adrian Street.
Oreana Property, led by brothers Steven and Tony Sass, is the buyer.
Cranbourne East, 45 kilometres south east of Melbourne, forms part of a major growth corridor also including Junction Village, Cranbourne North, Clyde and Clyde North – the latter where McDonald’s has another restaurant.
Another town centre site sale
Elsewhere in the area, 13 months ago, National Pacific Properties, a division of Burbank Homes, banked $67.65m for the 26.23ha parcel set to become the Clyde Town Centre.
Sydney based Bathla, in its maiden Victorian deal, was the buyer.
Across town, in 2021, meanwhile, Occasio Projects snapped up the 26.4ha Mernda Town Centre site from Woolworths, while Empire Properties snared the proposed retail centre of The Grove housing estate, in Tarneit, from Frasers Property Australia.
Outside of Melbourne, last year, Cotton On founder Nigel Austin spent $7.15m for a 6.23ha Fyansford, Geelong, block master-planned for that region’s town centre (story continues below).
“Demand for core retail sites underpinned by strong tenant interest and strategically located in rapidly expanding growth corridors remains strong, with…increased bidding and buyer activity from interstate groups,” Mr McIntosh said.
“While escalated construction costs and increased holding costs as a consequence of the rapid increase in interest rates is well publicised, developers continue to actively pursue core retail development opportunities in strong growth corridors,” he added.
In 2009, McDonald’s acquired Ringwood’s former Patterson Cheney Holden car dealership also to secure a corner for a store and sell down the balance.
Farmland set for shops, townhouses
Lot 2, 2 Adrian Street, along with the McDonald’s restaurant and a 1.29ha block on the north west side of the street and Ballarto Road, are master-planned to become the Cranbourne East Neighbourhood Centre.
The Oreana holding is permitted for retail and medium density residential.
The property across the road – which traded last June for $6.49m – is set to accommodate a supermarket anchored shopping centre, car park and townhouses.
Both parcels are opposite land earmarked as an employment zone.
Elsewhere in the immediate area are housing estates recently delivered by Devine, Lendlease and Peet.
Oreana, which controls a significant retail development pipeline, recently sold a Clyde North industrial site to Black Caviar owner Neil Werrett for $130m – more than double what it outlaid in 2019.
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