Centre’s $60m price tag
DEVELOPERS have placed $60 million price hopes on the first stage of the Armstrong Creek Town Centre.
The Coles-anchored shopping centre is now under construction at the heart of Geelong’s major urban growth area and has sparked keen interest from institutional, syndicate and offshore and local private investors after being listed for sale.
Developer Welsh Group intends to hand control of the 9755sq m retail complex on a 2.07ha site to new owners when the centre is completed, expected in July.
Colliers International’s Tim McIntosh and Mike Crittenden are handling the expressions of interest campaign, set to close on April 2.
At the centre of the investment is forecast growth of the primary catchment area from 60,000 to 116,000 people by 2036, Mr McIntosh said.
“The brand new centre, offering significant depreciation benefits, is strategically located within the future Armstrong Creek Town Centre, being the epicentre of Armstrong Creek, in one of Victoria’s largest urban growth areas,” he said.
Armstrong Creek Shopping Centre will be at the heart of a new 40ha masterplanned retail, commercial and residential community, Mr McIntosh said. It will be surrounded by housing estates from developers including Dennis Family and Villawood Properties
“Upon completion, Armstrong Creek Town Centre will provide 75,000sq m of retail, 50,000sq m of non-retail including commercial, childcare and medical facilities and over 1200 residential dwellings,” he said.
Mr McIntosh said institutional investors have been buying up major shopping centres on the Bellarine Peninsula and Surf Coast in recent years. He said the growth forecast would provide confidence to buyers.
“There are not many areas in Australia that has that level of population growth happening on line in the next five to 10 years,” Mr McIntosh said.
“That growing population means there is good demand for retailers in that location and that gives purchasers a lot of confidence.”
Retail assets with attractive cash flow and covenants secured by non-discretionary and nationally recognised tenants, coupled with strong population growth, continued to obtain high interest, he said.
Welsh Group managing director Andrew Welsh said visitors and residents would enjoy the convenience of working, shopping and dining all within easy walking distance.
Armstrong Creek Shopping Centre will offer an estimated fully leased net income of about $3.7 million and will be home to the only full-line Coles supermarket in the primary trade area on a new 15year lease. Other tenants already announced include Liquorland, Terry White Chemist, Beauty Genesis and Tattslotto.
The site adjoins a future home of the Armstrong Creek train station. The State Government has committed to start planning for the transit corridor to consider future land use, environmental issues and development and population plans.