A supermarket in one of Australia’s largest urban renewal projects has sold less than a month after it opened.
The supermaket on the ground floor and mezzanine of the 31-storey R.Iconic at Melbourne’s Fishermans Bend precinct changed hands for $17.5 million in a sale brokered by Fitzroys’ Chris Kombi, Chris James and Ben Liu.
The vendor was the developer of the tower, R.Corporation, while the buyer was a Melbourne-based private self-managed super fund investor who has not been identified.
The space is tentanted by Coles and Liquorland. It opened for business on November 1.
The deal is one of the biggest sales of a strata-titled retail property across Australia in 2023, according to Fitzroys.
The outlets comprise 1752sq m of GFA in the tower’s ground floor, which has a 90m frontage to Normanby Road and Boundary Street.
The first of two towers, R.Iconic tower one comprises 456 apartments. The second tower is planned to have 471 homes across 40 levels on a site next door at 253 Normanby Road.
Normanby Road is becoming a major highrise thoroughfare, with several other 30-plus storey developments under construction or planned. This includes a 40-storey build-to-rent tower now under construction at 247 Normanby Road.
R.Iconic is opposite the Montague Street Light Rail Station and within walking distance of Crown Casino, Southbank Promenade, the Melbourne CBD and Docklands. There is also access to major arterials including Citylink and West Gate Freeway.
“The property is at the epicentre of the Montague precinct’s building boom, with 4800 homes within 500m at various stages of completion, planning and construction,” James said.
“Coles undertook a feasibility study of the area and has made the astute decision to get into a prime location of the Montague precinct … investors clearly agreed on the strategic location and its trade prospects which will underpin the lease covenant.”
The 480ha Fishermans Bend had a population of 4354—the Melbourne City Council expected this would skyrocket to 80,000 and provide employment for 80,000 by 2050, James said.
Liu said the resilience of essential services and daily needs retail had been “resoundingly demonstrated during the past few years”.
“This deal is the latest evidence of ongoing demand from investors for highly defensive assets deemed to be recession-proof.
“Income-producing assets purchased now in the current economic environment will prove to be prudent investments over time.”
