CommercialClare BurnettWed 28 Oct 26
Retail Investors Target Melbourne’s Growth Corridors for New Returns
Melbourne’s growth corridors are attracting retail investment, with a $53.87-million neighbourhood shopping centre sale and a $90-million Bunnings warehouse conversion highlighting demand for convenience and large-format retail.
Frasers Property Australia has sold Mambourin Marketplace for $53.87 million to QIC, which acquired the centre for its Everyday Retail Fund.
Within the masterplanned community of Mambourin, 38km south-west of Melbourne’s CBD in the City of Wyndham, the 7593sq m centre opened in September last year.
Anchored by Coles, it has 27 tenancies across a mix of specialty retailers.
MinterEllison advised QIC on the transaction, while Holding Redlich acted for Frasers Property.
MinterEllison real estate partner Adrian Rich said investors were attracted to convenience retail assets supported by population growth, essential services and resilient income streams.
“The continued demand for neighbourhood shopping centres in growth corridors reflects the strength of the sector’s underlying fundamentals and the importance of non-discretionary retail to local communities,” Rich said.
Elsewhere, BWP Group has opened its $90-million Fountain Gate Central large-format retail development at Narre Warren, 38km south-east of Melbourne’s CBD.
The project repurposes a former Bunnings warehouse that had occupied the site since 1998.
BWP and Hames Sharley began work in late 2025 to subdivide, extend and reconfigure the existing 11,000sq m building.
The redeveloped centre now has 14,300sq m of gross floor area, with retail, a gym, allied health services, dining and lifestyle offerings, alongside 425 car parking spaces.
The centre includes the largest BCF store in Victoria, spanning more than 3500sq m. It is the 800th BCF store across Australia and New Zealand for parent company Super Retail Group.
Other tenants include Supercheap Auto, Rebel and Macpac’s first large-format Adventurer store in Victoria.
Large-format retail has remained resilient amid interest rate pressures.
CBRE reported earlier this year that the sector delivered annual investment returns of 12.8 per cent over the past decade, while vacancy fell to 2.8 per cent.
Sales and earnings before interest and tax for leading large-format retail tenants were nearly 50 per cent higher than in 2019, while margins remained broadly stable at 15 per cent, CBRE said.
New supply fell to a 10-year low in 2025.
