A dual-supermarket site in Kilmore, 60km north of Melbourne, has hit the market, offered as an exciting investment in one of greater Melbourne’s fastest growing regions.
Exclusively offered by Stonebridge Property Group’s Justin Dowers and Kevin Tong, the 5,264 sqm corner site of both Coles and Aldi come with refreshed 10- and 20-year leases respectively.
Coles in Kilmore is for sale with a 10-year lease. Picture: realcommercial.com.au
Located on the corner of Clarke and Sydney Streets, the dual supermarket site also forms part of a larger 18,600 sqm landholding comprising of national tenants including McDonald’s, Viva Energy (Shell), Amplifon, and Bakers Delight.
“Dual-supermarket investments are exceptionally tightly held, particularly within rapidly expanding growth corridors. These assets are becoming increasingly attractive as replacement costs continue to escalate,” said Mr Dowers, Stonebridge’s national partner.
“Coles and Aldi Kilmore effectively provides investors with two full-line supermarkets and complementary pad sites at a price point below the cost of delivering a single new supermarket in today’s construction environment, which is highly compelling.”
Aldi in Kilmore is for sale with a 20-year lease. Picture: realcommercial.com.au
The two supermarkets account for more than two thirds of the site’s gross income, bolstered by the town’s growth prospects and daily-needs expenditure.
Coles and Aldi Kilmore are offered for sale via expressions of interest, closing 9 April.
Price expectations are around the high $30 million range.
Kilmore and the Mitchell Shire are one of the state’s fastest-growing corridors, forecast to grow from 49,000 residents currently to 170,000 residents by 2041, according to the Victorian Government.
Once a distinct country town standing on its own, Kilmore – which claims to be one of Victoria’s oldest, dating back to 1837 – is slowly being enveloped by Melbourne’s sprawl.
“As the established retail and commercial centre of the region, Kilmore services an expanding catchment underpinned by forecast population growth of around 3.7% annually,” Stonebridge associate director Harrison Darling said.
“This steady demographic expansion is reinforcing local spending patterns and supporting long term investment fundamentals.”
Kilmore is set to grow exponentially over the next couple of decades. Picture: realcommercial.com.au
Currently the area is favoured by young families looking for affordability and country charm, while also being on the Seymour V-Line for easy access to Melbourne’s CBD.
“With Mitchell Shire recognised as one of Victoria’s fastest growing municipalities, the asset is uniquely positioned to capture the benefits of sustained population expansion across Melbourne’s northern corridor,” Stonebridge partner Kevin Tong said.
According to PropTrack data, the median price for houses sold in Kilmore over the past 12 months is $622,500, much less than than the greater Melbourne median of $854,400 for homes (houses and units).
For the rest of Victoria, this is compared to the median home value of $596,000.