JLL transacts Victoria’s Mernda Convenience Centre for $13.1m

Melbourne, April 28, 2020:  The Mernda Convenience Centre, located at 1407-1409 Plenty Road, Mernda, Victoria, has sold for $13,100,000 following an Expressions of Interest campaign handled by JLL Senior Director of Retail Investments Stuart Taylor and Director Tom Noonan. The transaction reflected an initial yield of approximately 4.8%.

The property comprises a brand-new freestanding Hungry Jack’s and Caltex-anchored convenience centre. The asset, completed in 2020, is located in the high profile Plenty Road area in the growing suburb of Mernda. The centre provided an attractive 13.1 year WALE (by income) and significant depreciation benefits.

The developer and vendor represents  a   collaboration of three property veterans; James Hunt, Brett Tooley and Jim Lamb. The developer specialises in the development of convenience retail assets, with a focus on properties anchored by fuel and fast-food tenancies. The developer’s key personnel bring a wealth of industry experience, leading developments for key national retailers including Caltex and McDonalds.

Taylor said, “We received a total of 14 EOI’s for the Mernda asset, with pricing achieved above the vendor’s expectations, demonstrating the level of demand for commercial property assets which are considered defensive in the current environment.”

Noonan added “Investors continue to be attracted to assets with long term leases to essential service or non-discretionary businesses.”

Taylor concluded “Some investors continue to look to direct property as a safe-haven, however they are being highly selective with the opportunities they will consider.”

Vendor James Hunt, said “We have a strong pipeline of convenience retail development projects and will be looking for further acquisitions over the next 6-12 months.”

“We have full confidence in this sector and the strong result achieved in our Mernda project reinforces our investment and development philosophy.”