Furniture store in Melbourne’s Mega Mile homemaker precinct for sale

A building leased to furniture retailer Early Settler in Melbourne’s Mega Mile large format retail strip is being sold by the family that’s owned it for three decades.

The Whitehorse Road showroom in Blackburn is expected to attract significant interest from investors, including those looking at the site’s future development potential, selling agents Savills and Stonebridge Property Group said.

Early Settler, which has 56 stores nationally, has occupied the Blackburn site for 14 years and recently renewed the lease for a further eight years after undertaking a significant refurbishment.

National furniture retailer Early Settler has occupied the Blackburn site for 14 years. Picture: realcommercial.com.au/for-sale

The property has been owned by the same family for 31 years and leased to major retailers over that time, Savills director of retail investments Rick Silberman said.

Mr Silberman expected buyers to be attracted to the certainty of the long-term lease secured by a quality and reliable national tenant, with strong rental growth and long-term development potential.

“For these reasons and the current shortage of similar opportunities in the market, we anticipate there will be significant interest from a wide range of groups,” he said.

The tightly-held Mega Mile is one of Australia’s biggest large format retail precincts, extending for two kilometres along Whitehorse Road in Blackburn and Nunawading.

The Early Settler store is located in Mega Mile homemaker precinct that stretches over two kilometres. Picture: realcommercial.com.au/for-sale

Early Settler Blackburn occupies a 2903sqm site, with a gross lettable area of 1775sqm.

Stonebridge partner Rorey James expected the large landholding and development potential, being in a commercial 2 zone offering flexible planning parameters for higher density, to generate interest.

“Landholdings of this scale and opportunity are seldom offered to the market in the eastern suburbs of Melbourne, particularly those anchored by a powerhouse national tenant,” Mr James said.

“Whilst there is a lease tail to run, the underlying land value based on current development will be a significant driver of value.”

Stonebridge Asia Practice partner Kevin Tong noted investors have been looking to future proof their portfolios.

“The past 12-24 months has seen a significant shift as investors seek land rich and secure income-producing investments to future proof their portfolio,” he said.

Large format retail assets have been highly sought-after by investors given the sector’s strong performance during the pandemic.

The Blackburn-Nunawading Mega Mile is the second largest LFR precinct in Melbourne and the seventh largest in Australia. It includes major big-box retailers Bunnings, Harvey Norman, JB Hi-Fi and The Good Guys.

Another Mega Mile building is up for sale – a three-level complex, including the basement carpark, that sits on a 821sqm landholding. It is leased to a tile retailer and a fitness academy.

Burgess Rawson, which is auctioning the property on 30 March as part of its latest portfolio auctions, said the high-exposure site is securely leased to long-established tenants with options through to 2027. 

Another building, leased to a tile retailer and fitness academy, in the Mega Mile is going to auction. Picture: realcommercial.com.au/for-sale