New big box retail in Ocean Grove hits the market

A just-finished big box development in Ocean Grove has hit the market and agents are describing it as a rare opportunity with long-term potential.

JLL and CRS are running the expression of interest campaign for the Ocean Grove Lifestyle Centre at 11–17 Prosperity Drive.

The large format retail centre was completed earlier this year and has four showrooms, presently occupied by Supercheap Auto, BCF, I Love This Shop and Anytime Fitness.

It comprises 3,586sqm of gross lettable area on an 8,335sqm corner site with 262m of triple street frontage and at-grade parking for 77 vehicles.

Fully leased net income is estimated at approximately $1 million annually, alongside a nine-year weighted average lease expiry (WALE) and fixed annual rental increases of 3 to 3.5 per cent across all tenancies.

As a new centre, it also offers purchasers depreciation benefits and potential access to Victoria’s 50 per cent regional stamp duty concession.

JLL’s Tom Noonan said the centre combined new construction with the security of national and ASX-listed tenant covenants.

“Ocean Grove Lifestyle Centre delivers everything private investors are seeking: a brand-new asset, a nine-year WALE, guaranteed rental growth and an anchor covenant in ASX-listed Super Retail Group,” he said.

 

“Brand-new large format retail investments of this quality are rarely offered to the market and we expect strong interest from high-net-worth investors and syndicators alike.”

Positioned opposite the Kingston Village Shopping Centre, the property occupies a high-exposure corner of Prosperity Drive, Activity Drive and Hartwell Street within what is described as Ocean Grove’s premier retail precinct.

JLL’s Stuart Taylor said the centre’s location offered substantial long-term growth potential.

“Greater Geelong boasts the fastest population growth in Victoria and the second fastest in Australia, with the population forecast to grow 47 per cent to more than 441,000 by 2046,” he said.

“Ocean Grove combines a thriving coastal lifestyle with deep trade catchment fundamentals – exactly the profile that drives enduring tenant and investor demand.”

The development is Leading Edge Property Group’s seventh retail project in the Kingston Village precinct.

“Being one of Melbourne’s strongest growing growth corridors over recent years has bolstered the appetite of national brands to not only Ocean Grove but also to the Bellarine Peninsula, which is now recognised as a true retail destination location,” Leading Edge Property Group chief executive Travis Snow said.

Expressions of interest close on 9 July at 3pm.