First Major Test of Australia’s Retail Market in “COVID-Normal” Environment
Australia’s retail property market is set for its first test in the “COVID normal” environment of 2022, with the high-performing freestanding Woolworths Eltham up for sale.

Fitzroys’ David Bourke, Chris James and Shawn Luo have been appointed to market the modern supermarket asset at 23 Arthur Street, in conjunction with Stonebridge Property Group, via an Expressions of Interest campaign closing 24 March.

Expectations are of circa $30 million as a fast-growing pool of investors looks for defensive, income-producing investments that have proven to be pandemic-proof.

Leased to blue-chip tenant Woolworths on a brand-new five-year lease plus options through to 2050, the 4,249sqm modern, full-line supermarket returns $1,166,000 per annum with full recoveries of outgoings including state land tax.

Built 20 years ago, it has a large 282 car parks over 2 levels and is on a substantial Commercial 1-zoned site of 9,044sqm in a high-profile location between Coles, Aldi and Dan Murphy’s in the centre of the Melbourne suburb of Eltham and its major commercial precinct, and located just moments from Eltham train station and multiple bus routes.

“This promises to be the first test for Australia’s retail property market in the ‘COVID normal’ environment,” Bourke said.

“The asset has been offered at an ideal time, with defensive and daily needs-oriented retail assets at the top of investors’ shopping lists, and a huge amount of pent-up capital waiting to be deployed after low levels of quality stock came to the market over the past two years,” he said.

“Freestanding supermarkets in established metropolitan locations are an ultra-rare proposition that offer some of the most prized fundamentals of any commercial property investment in the current climate.

“Woolworths Eltham offers a blue-chip tenancy covenant in a low interest rate environment, with a COVID-proof income stream, and a prime location within an established and growing catchment.”

Investors consider freestanding supermarkets among the most prized assets in the market, evidenced by the sharp yields seen in recent months for assets in Melbourne’s established suburbs of Balwyn, Hawthorn, Malvern and Blackburn South.

Australia has retained its safe-haven investment status throughout COVID, and interest is expected from local, national and international buyers.

Investors can look forward to a sizeable passive income stream from a blue-chip tenant, while the site’s favourable Commercial 1 zoning and location in the major commercial precinct of Eltham present huge longer-term potential.

Woolworths Eltham benefits from a strong established trade area of over 56,000 people, with excellent growth projections over the next decade.

National Tiles Portfolio Sells
National Tiles has sold off 3 of its showrooms with 12-year leasebacks to investors for nearly $21.4 million.

A private Melbourne-based family bought properties in Mitcham for $8.27 million and Sunshine for $5.38 million at an average yield of 3.9%,

The 1,360sqm Mitcham showroom and warehouse is on a 2,171sqm site, and the 1,400sqm Sunshine building is on 3,716sqm.

A 1,720sqm Grovedale showroom, office and warehouse in Geelong sold for $7.725 million, at a 4.14% yield.

Each of the properties has 2 10-year options.

Clyde Farmland Sells for $140m
Developer ID Land has paid $140 million for 59ha of farmland in the south-eastern growth corridor suburb of Clyde.

The amalgamated site at 200-230 Moores Road and 185 Manks Road will yield around 1,200 lots once the Clyde South Precinct Structure Plan is rezoned for residential development, expected in the coming years.

The Moores Road parcel has been used by the Arnott family to grow vegetables for over 110 years as part of the Arnotts Vegetable Farms business, while the Manks Road property has been used by the Blundy family, which have a history as market gardeners.

Last year, ASX-listed Mirvac paid $70 million for a 30ha site in Clyde North adjoining 2 of its existing housing estates, and Dahua Australia bought a 41ha site close by for about $100 million that is expected to yield 750 housing lots.