First Blue-Chip Supermarket Investment Offering for Fishermans Bend Precinct
The first major supermarket offering in the Montague precinct of Fishermans Bend - leased to S&P/ASX 20 giant Coles - has hit the market, offering a blue-chip opportunity to invest in Australia’s largest urban renewal precinct.

Fitzroys’ Chris Kombi, Chris James and Ben Liu are marketing the 2,345sqm property at 263 Normanby Road, South Melbourne, on the ground level of the brand-new R.Iconic development.

Coles and Liquorland will begin trading from the premises in November once all tenancy fit- out works are completed, on a secure 10-year lease plus options on a deal that was also negotiated by Fitzroys.

Expectations for the Coles at 263 Normanby Road are of in excess of $17 million and interest is expected from local, national and international buyers.

The self-contained property comprises a ground floor area of 1,752sqm and mezzanine level of 593sqm, at the base of the 32-level R.Iconic residential tower. Liquorland will trade from 180sqm within the property, which has a dominant 90-metre frontage to Normanby Road and Boundary Street.

The Coles is perfectly positioned opposite the Montague Street Light Rail Station, providing access to thousands of daily commuters and a direct route to the Melbourne CBD and surrounding suburbs. The property is within walking distance to Crown Casino, Southbank Promenade, the Melbourne CBD and Docklands. There is also convenient access to major arterials including Citylink and West Gate Freeway.

“This is a remarkable chance to invest in both a brand-new blue-chip retail asset and in Australia’s largest urban renewal precinct,” Kombi said.

“This will be the first major supermarket to service the Montague precinct.

“Coles undertook a feasibility study of the area and has made the astute decision to get into a prime location of the Montague precinct, within affluent South Melbourne, in a corner site on the cusp of a building boom.”

“The property is at the epicentre of the Montague precinct’s building boom, with 4,800 dwellings within only 500m of the property at various stages of completion, planning and construction.”

The R.Iconic towers has delivered 456 apartments, while the 40-level stage 2 of the project, next door at 253 Normanby Road, will deliver 40 levels and another 471 apartments. Normanby Road set to become a major high-rise thoroughfare, with several 30-plus level developments under construction and planned for the precinct.

“We’re really starting to see the development potential of the Montague precinct come to fruition. We’re also starting to see the flow-on effect to the area’s retail landscape,” James said.

“Coles has found a position at the seat of Australia’s largest urban renewal project. The 480-hectare Fishermans Bend currently has a population of 4,354, and Melbourne City Council expects this will skyrocket to 80,000 residents and provide employment for 80,000 people by 2050.”

“The apartment development pipeline in the immediate area will provide an excellent catchment for Coles in the coming years, and the precinct’s focus as a key residential and employment hub offers unrivalled prospects for ongoing trade growth.”

“We’re seeing the development pipeline responding to huge demand that will secure ongoing growth. There’s currently a major undersupply of dwellings, and Australia is about to welcome a record 715,000 migrants over the coming 2 years, and Melbourne will receive many of them. Particularly at a time of flexible working arrangements, many people are favouring highly accessible inner-city locations with quality amenity to live, work, shop and play.”

“Inner-city Coles investment opportunities are extremely rare, let alone with this unrivalled level of trade growth potential.”

Liu said, “The resilience of essential services and daily needs retail have been demonstrated resoundingly over the past 3 years. The high-inflation environment is expected be short-lived and defensive, income-producing assets purchased now will prove to be very prudent investments”.

Coles recorded a 7% year-on-year increase in group sales revenue across its supermarkets in the March quarter, and 7.9% growth in gross supermarket retail sales to $8.874 billion.

Expressions of Interest in close Tuesday, 15th June at 3pm.

Versatile Freehold on the Edge of Melbourne’s CBD
Owner-occupiers, developers and value-add players have the ideal chance to make their mark on one of Melbourne’s fastest-changing precincts, which Melbourne City Council has designated as “the next Fitzroy or Collingwood”.

Fitzroys Ervin Niyaz, David Bourke and Ben Liu are marketing 356-362 King Street, West Melbourne, on the corner of Walsh Street, for sale via Expressions of Interest closing Wednesday, 14th June at 2pm.

Expectations are of circa $5.5 million.

The 604sqm corner site boasts a commanding 49.55m frontage and currently comprises a highly versatile 2-level 1,200sqm building with 28 residential rooms and ground floor office, currently used as short-stay residential accommodation, and has multiple on-site parking and easily accessible to public parking. It is being offered with holding income of $122,712pa plus outgoings and GST.

Bourke said the property has valuable Mixed-Use zoning, allowing for development of up to 14m in height, and is suited to a range of uses and development outcomes in a true CBD fringe location.

“It’s in a great position, close to Queen Victoria Market, the hospitals and education precincts, Flagstaff Gardens, public transport, and the Errol Street retail and lifestyle strip,” Bourke said.

“This is an ideal chance for owner-occupiers, developers and value-add players to make their mark on a fast-changing CBD fringe location with a big future.

“Developers and value-add players can take advantage of the Mixed Use zoning and deliver a commercial and residential offering that caters to high demand for both dwellings and commercial space. Occupiers could continue operating the property as short-stay accommodation or easily convert to offices, at a time in which many Melburnians are favouring living and working in highly accessible inner-city locations with quality hospitality and lifestyle amenity nearby.”

Niyaz said West Melbourne is rapidly gentrifying from its industrial roots.

“West Melbourne is really beginning to realise its potential, attracting more residents drawn to the amenity and lifestyle of the CBD and North Melbourne, Flagstaff Gardens and Queen Victoria Market, and the increasing number of mixed-use developments in the suburb.

As part of the City of Melbourne’s Municipal Planning Strategy and City Spatial Plan, West Melbourne is envisioned by Melbourne City Council as “the next Fitzroy or Collingwood”1.

According to population data firm .id, West Melbourne’s population has more than doubled from 3,732 in 2011 to 7,986 in 20222 as the suburb evolves from its industrial roots. The City of Melbourne expects West Melbourne’s population will surge to 19,000 by 2036 and there will need to be 4,500 to 6,500 additional jobs in the suburb in that time3.

West Melbourne has access to high-quality and convenient public transport options, with 356-362 King Street well-serviced by tram networks on Victoria Street, William Street, Spencer Street and La Trobe Street, while Flagstaff and Southern Cross train stations are also within easy walking distance of the property, and the future Arden train station - part of the $11 billion Metro Tunnel development - will be delivered nearby.