Woolworths set for $50 million payday offloading Mernda Town Centre

An aerial view showing the site (highlighted) which Woolworths is selling.

Woolworths Limited is selling a strategic development site adjoining the proposed Mernda railway station in Melbourne’s north-east.

The 26.4 hectare block, which incorporates the historic Mayfield Farm, is master-planned to become the Mernda Town Centre.

Expected to trade for about $50 million, the property is being offered with plans to be replaced with a shopping centre, entertainment precinct, commercial, residential and community precincts.

The infill parcel sits amid a wave of established and upcoming housing estates. Developers including Central Equity and Stockland are amongst the biggest landowners in the suburb, which marketing agency CBRE says is Victoria’s sixth fastest growing.

Woolworths and its liquor arm BWS have committed to a leaseback of the supermarket component of the shopping centre.

“This mixed-use centre has been specifically designed to integrate with the proposed Mernda railway station to provide the community with convenience and connectivity,” broker Justin Dowers said.

“The Town Centre is perfectly positioned to supply retail and residential product to meet the demands of the expanding populace. Woolworths has also progressed the development process substantially, meaning the offering is significantly de-risked and development ready”.

Mr Dowers with colleagues Mark Wizel, Julian White and Lewis Tong, are managing an expressions of interest campaign for the site, about 25 kilometres from the CBD.

Last month we reported that Woolworths had banked $45.7 million disposing of two established shopping centres in the regional New South Wales towns of Nelson Bay and Lisarow. The retailer also sold a Perth supermarket in Aveley for $27 million.

In August Woolworths leased what will be the biggest supermarket in Melbourne’s Southbank precinct.

Artist’s impression of the completed Mernda Town Centre.

 

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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