Doing the supermarket shopping

Friday 10 June 2016

The regional opportunity

A freestanding Woolworths supermarket located in northern Victoria situated is currently up for grabs. The site, at 60-66 Union Street and 14 & 17-18 Bradley Street, Kyabram, is set to be one of the most sought after investments at Burgess Rawson’s next portfolio auction, which is due to start at 11am on Wednesday 29 June at Crown Casino.

The significant 7195-square-metre landholding has abundant on-title and council parking, and the full-line supermarket includes a standalone BWS Liquor outlet on-site. The supermarket is part of an important commercial centre servicing the Goulburn Valley region.

A 20-year lease is in place to December 2034, with options to 2079. Woolworths pays a net rent of $1,151,725 per annum as well as increases in outgoings.

“The supermarket is already a proven performer having undergone extensive upgrades which will see it service this growing region for generations to come as evidenced by Woolworths’ recent long-term commitment to this site,” said Burgess Rawson director Jamie Perlinger.

He added that supermarket investments continue to be an attractive asset class, providing stable investments with particularly long-term leases to major publicly listed companies. Additionally, the large land element generally associated with the stores provides underlying capital value. The nature of the building itself also generates depreciation benefits, enhancing the after tax return.