Ivanhoe’s Woolworths supermarket has hit the market with expectations of more than $20 million, presenting buyers with the opportunity to invest in a trophy retail asset in Melbourne’s densely populated inner east.

The 3,552sq m full-line supermarket and BWS at 72-84 Upper Heidelberg Road occupies a highly visible corner location in the heart of the suburb’s bustling shopping precinct.

Savills Australia’s Benson Zhou, Clinton Baxter, Julian Heatherich and Jesse Radisich have been appointed to market the property, saying they expected interest from private local and offshore investors.

“We have three local agents and four Asian Services agents working timelessly on this campaign, and have been extremely busy answering enquiries from overseas and organising inspections,” he said.

“We have received a decent level of interest from Asian investors indicating their willingness to offer more than $20 million.

“Chinese investors have found a great level of security in the Woolworths brand so we’re also anticipating strong contest from this buyer group, particularly given the premium Ivanhoe location – one of the best suburbs they can expect to buy a full-line Woolworths in Melbourne.”

Mr Zhou went on to say that the long-term lease to Woolworths Limited, an ASX Top 10 company, would be a key drawcard for prospective buyers.

“The 15-year lease covenant with six five-year options to renew is a secure investment proposition, generating a net income of about $917,078 per annum,” he said.

Mr Baxter said Woolworths’ recent $4.9 million upgrade to the premises was another key selling point, leaving few, if any, capital expenditure requirements.

“The asset presents significant depreciation benefits of about $14.5 million,” he said.

The property includes 178 basement car parks on title.

Mr Zhou highlighted the strong investment fundamentals of Ivanhoe, saying the immediate retail catchment area would grow in line with the suburb’s population.

“The City of Banyule’s population is forecast to grow 147,098 by 2036,” he said.

“As a result, there is increased residential development in the area, and a gradual upward trend in the value of building approvals.”

Expressions of interest in 72-84 Upper Heidelberg Road, Ivanhoe, close Wednesday 10 April at 2pm.

Learn more about Savills Retail Investments.