A furniture showroom in Melbourne’s Mega Mile homemaker precinct, leased to Early Settler, is now up for sale. The property, situated on Whitehorse Road in Blackburn, has been under the ownership of a family for over three decades. Selling agents Savills and Stonebridge Property Group anticipate strong interest from investors eyeing both the current lease and the site’s future development potential.
Early Settler, a prominent national furniture retailer with a longstanding presence in the Blackburn location, recently extended its lease after a significant refurbishment. The property’s history of hosting major retailers adds to its appeal in the market. Savills’ director of retail investments, Rick Silberman, highlights the attractiveness of the long-term lease secured by a reputable tenant, emphasizing the potential for rental growth and development.
The Mega Mile homemaker precinct, spanning two kilometers in Blackburn and Nunawading, is a coveted large format retail area. Early Settler’s Blackburn store, occupying a substantial site with a significant lettable area, is seen as a rare opportunity in Melbourne’s eastern suburbs. Stonebridge’s partner, Rorey James, underscores the landholding’s size and development prospects, particularly within a zone offering flexible planning parameters for potential higher density.
Investors are increasingly seeking secure income-producing investments with future growth potential. Stonebridge Asia Practice partner Kevin Tong notes this trend, emphasizing the shift towards land-rich assets in portfolios. The demand for such investments has grown significantly in the past year, reflecting a strategic move to future-proof portfolios amid market uncertainties.
The furniture showroom’s sale comes at a time when large format retail assets are in high demand due to their resilience during the pandemic. The Mega Mile precinct, home to major retailers like Bunnings, Harvey Norman, JB Hi-Fi, and The Good Guys, stands out as a key player in Melbourne’s retail landscape. The presence of established tenants and the potential for future development make properties in this precinct highly sought after by investors.
Another building in the Mega Mile precinct, housing a tile retailer and a fitness academy, is also set for auction. Burgess Rawson, managing the auction, highlights the property’s secure leases with established tenants, offering options through to 2027. The appeal of such properties lies in their high-exposure locations and stable rental income streams, making them attractive investment opportunities in the current market.
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