Surprise Woolies and IGA listings spark buyer rush

News.com.au

16-06-2025

A forgotten Woolworths in Melbourne's west and a humble IGA in the northeast have become the city's unlikeliest property powerhouses, and savvy investors are already circling.
The two suburban supermarket sites – one vacant, the other trading under lease – have been owned by local families for decades.
Now, for the first time in up to 40 years, they're hitting the market with agents expecting serious competition from developers, land bankers and big-brand retailers chasing a slice of Melbourne's growth corridor action.
At 39 Borrack Square, Altona North, a sprawling 1871sq m self-contained building once home to Woolworths is being offered with vacant possession.
The site features a rear loading dock, cool rooms, amenities, offices and three street frontages, forming the heart of the Borrack Square convenience precinct.
It's the first time the property has been publicly offered in 25 years.
Fitzroys agents Ervin Niyaz and David Bourke are marketing the former Woolies, calling it a 'rare opportunity' in one of the west's fastest-changing neighbourhoods.
'We're expecting interest from supermarket operators, large format retailers, and repositioning specialists,' Mr Niyaz said.
'It's surrounded by strong foot traffic drivers like Chemist Warehouse, Australia Post, TAB and the Millers Inn, and sits directly opposite a large public car park.'
The location is further buoyed by the soon-to-be-completed West Gate Tunnel, which will offer a crucial alternative to the West Gate Bridge and improve commuter access across the western suburbs.
Mr Niyaz said the property could be re-leased as-is or repositioned, with the surging population and workforce in Altona North, including the nearby Myer distribution centre, Toyota R & D facility, and Mobil refinery adding to its appeal.
'This is the kind of asset you buy now and thank yourself for later,' he said.
Over in the northeast, Fitzroys' Chris Kombi, Chris James and Ben Liu are handling the sale of 90-94 Lower Plenty Rd, Rosanna, a long-held supermarket investment with strong holding income and future redevelopment upside.
The 540sq m building is currently occupied by a high-performing IGA + Liquor and features a licensed Tattslotto outlet built into the checkout area. It's on a generous 737sq m Commercial 1-zoned block, with rear access, seven on-site car parks, and a commanding 16.4m street frontage.
A price of $3m-plus is expected.
'The property has been in the same family for 40 years and has operated as a supermarket for more than 60,' Mr Kombi said.
'It presents a rare dual benefit, you're getting immediate rental income plus the long-term potential to redevelop in a rising location.'
The IGA is on a 5+5-year lease from November 2022, providing holding income while buyers explore their options.
The property sits within Rosanna Village's popular shopping strip, close to Chemist Warehouse, Australia Post, cafes, fitness centres and takeaway outlets, and just a short walk from the recently rebuilt Rosanna train station.
'This is a classic landbanker's dream,' Mr Liu added. 'You've got walkability, a high-growth catchment and zoning that allows for future flexibility.'
Recent high-density apartment builds in Rosanna have transformed the area's demographics, bringing in more young families, professionals and higher property values.