Written by The Australian Jewish News
Burgess Rawson has been appointed to sell the full-line IGA plus Liquor supermarket at 5 Harcrest Boulevard on the corner of Stud Road, Wantirna South. The property will go under the hammer at their Portfolio Auction at Crown Casino on Wednesday 6 April, commencing at 11am.
Selling agents Ben Appel and Raoul Holderhead said the property was likely to be the trophy buy of the auction since it represented the pinnacle of retail investment buying in the current market while still being affordable. The agents expect a price in the low to mid $4 million dollar range.
Appel, who has been fielding enquiries from across Melbourne and interstate, said the property has generated very strong interest since its early release to investors a few weeks ago.
“We have received enquiry from most of the well-known supermarket investors and retail players in Melbourne. Harcrest is one of the best examples of a new, modern master planned housing development and this supermarket not only sits at the entrance to the new estate but also services the whole City of Knox, one of the most populous municipalities in Melbourne with a population of around 160,000,” he explained.
On top of its prime position and location within the boutique Harcrest Village shopping centre, the supermarket itself boasts many prime attributes including a building envelope of just under 900 square metres and a lease to a subsidiary of listed supermarket distribution and marketing giant Metcash Limited for an initial term of 15 years with further five-year options through to 2042.
The rent is forecast to increase to $288,206 per annum from September this year. There are annual CPI and turnover rent provisions to ensure the investment keeps pace with inflation and the buoyancy and anticipated upswing within the grocery sector over the next few years.
“IGA now has over 1400 stores around Australia, and with Metcash operating and guaranteeing the lease and business at Wantirna South, you effectively have the biggest IGA operator as your tenant. This ensures that this lease covenant can stand up next to any Coles or Woolworths investment presently on the market,” said Appel.
Harcrest Village shopping centre features 96 on-site car parks, five shops and a cafe. It sits at the entrance to the Harcrest development, which is still being constructed by major developer Mirvac. Due for completion in around 18 months, the total number of houses to be delivered in the estate is 900 with close to 500 finished to date. An additional 115 homes are due to be completed by June 2017 with a further 310 lots due to settle in that time.
“The IGA plus Liquor at Harcrest Village is poised to service the next generation of housing growth in the area, while still capitalising on a major housing catchment that is underserviced in terms of supermarket offerings contained outside of nearby Westfield Knox,” Appel added.