Developer’s $60m hopes for new Armstrong Creek Shopping Centre

Developers have placed $60 million price hopes on the first stage of the Armstrong Creek Town Centre.

The Coles-anchored Armstrong Creek Shopping Centre is now under construction at the centre of Geelong’s major urban growth area, one of Australia’s fastest growing, and has sparked keen interest from institutional, syndicate and offshore and local high net work private investors after being listed for sale.

Developer, the Welsh Group, intends to hand control of the 9755sqm retail complex on a 2.07ha site to new owners when the centre is completed, expected in July.

Colliers International’s Tim McIntosh and Mike Crittenden are handling the expressions of interest campaign, set to close on April 2.

At the heart of the investment is forecast growth of the primary catchment area from 60,000 to 116,000 people by 2036, McIntosh says.

Stage one of the Armstrong Creek Town Centre includes a Coles supermarket and speciality shops.

“The brand new centre, offering significant depreciation benefits, is strategically located within the future Armstrong Creek Town Centre, being the epicentre of Armstrong Creek, in one of Victoria’s largest urban growth areas,” he said.

Armstrong Creek Shopping Centre will be at the heart of a new 40ha masterplanned retail, commercial and residential community, McIntosh says.

It will be surrounded by housing estates from developers including Dennis Family Corporation and Villawood Properties.

The $1 billion Armstrong Creek Town Centre will provide 75,000sq m of retail, 50,000sq m of non-retail including commercial, childcare and medical facilities and over 1200 residential dwellings.

“Upon completion, Armstrong Creek Town Centre will provide 75,000sqm of retail, 50,000sqm of non-retail including commercial, childcare and medical facilities and over 1200 residential dwellings,” he says.

McIntosh says institutional investors have been buying up major shopping centres on the Bellarine Peninsula and Surf Coast in recent years.

He says the growth forecast will provide confidence to buyers that their tenants could do good business at Armstrong Creek.

Several large housing estates neighbour the Armstrong Creek Shopping Centre site. Picture: Alan Barber

“There is not many areas in Australia that has that level of population growth happening on line in the next five to 10 years,” McIntosh says.

“That growing population means there is good demand for retailers in that location and that gives purchasers a lot of confidence.”

Retail assets with attractive cash flow and covenants secured by non-discretionary and nationally recognised tenants, coupled with strong population growth, continued to obtain high interest, he says.

Welsh Group managing director Andrew Welsh says visitors and residents will enjoy the convenience of working, shopping and dining and evening watching a move all within easy walking distance.

Mirripoa Primary School at Mt Duneed is one of several schools already operating in the Armstrong Creek catchment. Picture: Alison Wynd

Armstrong Creek Shopping Centre will offer an estimated fully leased net income of about $3.7 million and will be home to the only full-line Coles supermarket in the primary trade area on a new 15-year lease. Other tenants already announced include Liquorland, Terry White Chemist, Beauty Genesis and Tattslotto.

The site adjoins a future home of the Armstrong Creek train station. The State Government has committed to start planning for the transit corridor to consider future land use, environmental issues and development and population plans.

This article from the Geelong Advertiser originally appeared as “Developer’s next move for Armstrong Creek Shopping Centre”.