As Melbourne’s commercial property market continues to evolve, the sale of a high-profile supermarket in Blackburn highlights the growing investor appetite for well-located, income-generating retail assets.
Despite broader economic shifts, quality retail investments remain a standout, offering stability, long-term growth, and strong tenant demand.
Transacted on behalf of Pace Development Group, the property at 162 Whitehorse Road, Blackburn is anchored by Jefferies Provedore, a premium supermarket operator inside the recently completed mixed-use development in one of Blackburn’s busiest retail precincts.
While the sale price remains undisclosed, the transaction was negotiated by Raphael Favas, Jack Cooper and Valerie Tang of Cushman & Wakefield and reflects a broader trend: investors are increasingly gravitating toward assets that combine long-term lease security, strong tenant covenants, and strategic location.
According to Raphael Favas of Cushman & Wakefield, Jefferies Provedore, with a proven track record and a thriving sister store in Croydon, brings both brand strength and operational reliability.
“The lease structure is particularly attractive: a 15-year initial term with three additional five-year options, potentially extending occupancy through to 2053” he said.
The asset delivers $310,500 + GST + outgoings annually, with fixed 3.5% annual increases, offering a predictable and growing income stream. The property spans 1,009 sqm* on a prominent corner site, with 45 car spaces and high foot traffic exposure. Completed in 2023, the development features a capital-intensive fit-out and significant tax depreciation benefits, enhancing its appeal to yield-focused investors.
Located in Blackburn’s retail heartland and surrounded by complementary businesses and affluent residential communities, the supermarket is well-positioned to benefit from sustained consumer demand.
Jack Cooper of Cushman & Wakefield said the campaign generated 77 enquiries and six inspections, reflecting strong interest in quality retail assets.
“We saw strong engagement from both private investors and syndicates. The depth of enquiry reflects a clear market preference for secure, income-generating assets with premium tenancy profiles."
*Approx.
