Written by The Australian Jewish News
A Dan Murphy’s liquor outlet is one of the stand-out assets that will go under the hammer at Burgess Rawson’s next Portfolio Auction at Crown Casino on Wednesday 29 June from 11am.
Situated at 5 Brentford Square, Forest Hill, the property is on the corner of Canterbury Road on an allotment of approximately 1068 square metres.
Burgess Rawson director Graeme Watson expects it to sell for a price shy of $6 million on a market yield in the order of 5 per cent. The property is found in the Brentford Square shopping strip, which includes a Woolworths supermarket, a CBA and an Australia Post as well as local traders such as a chemist, a newsagent, coffee shops and independent food stores.
Watson noted that the strip is set to be enhanced by Woolworths’ application to extend and complete a $5 million refurbishment of its supermarket, as well as plans to upgrade the internal fit-out of the Dan Murphy’s at an estimated cost of $500,000.
The 1402-square-metre building is fully leased to Woolworths on a 15-year lease plus 15 years of options through to 2037 at a current rental of approximately $300,000 per annum plus outgoings and GST.
“The investment is enhanced by the availability of depreciation benefits estimated at $950,000, potentially enabling some $80,000 of the first year’s rental to be free of income tax,” said Watson.
“With the added security of Dan Murphy’s dominating the liquor industry, with the remainder of the sector being fragmented, the Forest Hill property, with all it has to offer, is a rare and somewhat unrepeatable opportunity,” Watson added.