A Mixed Use-zoned site in Melbourne’s inner-west Maidstone is selling to a local family investment group for $25.5 million.
The 1.9 hectare Highpoint Lifestyle Centre at 98-108 Hampstead Road is presently a large-format shopping centre, with tenants including Baby Bunting, Supercheap Auto and Woolworths Petrol.
It returns annual rent of c$1.12m – the results reflects a 4.75 per cent passing yield.
The property was targeted to developers considering a mixed-use project maybe with apartments in the medium term.
Savills’ Ben Parkinson and Rick Silberman said enquiry from investors and developers was high.
“Highpoint Lifestyle Centre is a primary example of how investors and developers are becoming increasingly active and aware of the opportunities in the mixed-use development space,” the former said.
“The demand seen for Highpoint Lifestyle highlighted how mixed-use opportunities are coming of age in response to the changing consumer demands of our burgeoning inner-city locations.”
Flexible zoning surrounded by high-rises
About eight kilometres from the city, 98-108 Hampstead Rd is between Highpoint Shopping Centre and an area covered by the Maidstone Hampstead Road East Framework Plan, implemented in 2012 and last updated in 2015, which seeks to replace industrial sites with residential.
In planning documents, the Highpoint Lifestyle Centre blocks is identified for its potential for a major residential-based project.
Several apartment developments have taken shape in the pocket including 62 Wests Rd, Maribyrnong, at the Cordite Rd roundabout.
Orion International also built a Quest-backed hotel at 2A Wests Road (which is for sale seeking $20m plus).
Medium and high-density residential development is expected to form part of the 128ha Maribyrnong Explosives Factory redevelopment.
Apartment buildings were also promoted as development outcome for a Commercial 1 site, 179 Rosamond Rd, Maribyrnong, which sold for $80.5m last November.
Highpoint Shopping Centre re-positioning
In 2016, GPT Group unveiled plans to build a hotel, university and medical hub at Highpoint.
It is expected longer-term that apartments could also be built there – bringing it into line with other Melbourne shopping centres including The Glen at Glen Waverley and Westfield Doncaster.
Offices are also mooted at Maribyrnong.
The retail property has also been speculated as a possible stop for a train station should an existing line be extended beyond Melbourne Showgrounds.