Salvos signs major lease for new purpose-built Geelong thrift store

An artist’s impression of the new Salvation Army store at the Armstrong Creek Town Centre.

A new Salvos thrift store is set to open in Armstrong Creek at a purpose-built retail facility in the expanding town centre.

Salvation Army Stores is the latest tenant to sign a pre-construction lease at the precinct as it eyes a share of the area’s rapidly growing population.

It will join high-profile outfits Starbucks, Lebanese charcoal chicken sensation El Jannah, headspace and Planet Fitness and Guardian Childcare and Education.

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Colliers negotiated a seven-year lease with Salvos Stores, with three five-year options, for a stand-alone 597sq m building at 18 Rivernook St, Armstrong Creek.

Site works have started at the 1543sq m site with handover expected in May this year.

Colliers Geelong senior sales and leasing executive Chris Nanni said the agreement underpinned the subsequent sale of the property to a local private investor for $3,436,390.

The transaction represents a sharp yield of sub-5.15 per cent.

Mr Nanni said it reflected renewed interest in quality commercial assets in Geelong, particularly in emerging precincts like Armstrong Creek.

Retail offerings are continuing to expand at the Armstrong Creek Town Centre.

“After a subdued 12-month period, we’ve seen a clear resurgence in market activity,” Mr Nanni said.

“Tenants are upgrading into high-quality premises that were previously on hold, and investors have returned with strong intent following a prolonged shortage of quality opportunities in the region.

“Across Greater Geelong, transaction volumes have strengthened in the latter half of the year as the market adjusts to the new normal.

“With limited new retail and large-format development, combined with a surge of activity within the Armstrong Creek Town Centre, both demand and rental growth have accelerated.”

Salvation Army Stores regional manager Lorena Hutchings said it constantly reviewed its network and was keen to secure a foothold in Geelong’s largest growth area.

The Lebanese charcoal chicken sensation El Jannah is being promoted as an anchor tenant in the development.

“We identified the need for a store within Armstrong Creek to service the growing population in this region and saw this opportunity along the highway, with great exposure, as the perfect location for our next store,” she said.

A new Woolworths supermarket is among other projects currently under construction at the town centre.

Brix Property Group is also developing multiple pad sites, which have proven popular with big-name tenants seeking high-profile locations.

“With only a limited number of tenancies remaining and strong interest from both local and national operators, the momentum is highly encouraging for the success of the broader development,” Mr Nanni said.