A prime retail property that has operated as the Phillip Island Bakery for more than 50 years could become a holidaymaker’s dream investment.
The bakery-leased Cowes property, which sits at the Chapel St/Thompson Ave roundabout in the popular Victorian coastal town, will go to auction next month, after thousands of patrons have poured through its doors over the summer period.
Agents say the high profile building is likely to fetch around $1.5 million.
The bakery business – which is not included as part of the sale – does a roaring summer trade and is just a short walk from the Cowes foreshore.
Spanning 262 sqm, the property has 35m of street frontage and is positioned adjacent to Aldi supermarket and close to Woolworths, Coles, NAB and ANZ.
Having operated as a bakery for more than 50 years, the business has changed hands only three times, with the current business owners running the business for about 15 years and recently signing a new five-year lease that will see them continue to push out pies and pastries from the premises until at least 2023.
Burgess Rawson director Raoul Holderhead says there are few stronger small businesses on the island, suggesting the tenancy is likely to continue in the long-term.
“This is arguably Cowes’ best corner,” he says.
“I was down there the other day, we got there about 2.30 and we thought the place would be nearly be closed and no one would be around, but the line was out the door.”
“They supply a lot of the other smaller supermarkets and milk bars around the island, as well.”
The property currently returns almost $82,000 annually, with annual CPI increases and the tenant paying all the usual outgoings.
Mr Holderhead says there is also potential to increase the scope of the building in future – subject to council approval – with other similarly-zoned surrounding buildings having a second storey.
It will go to auction at Burgess Rawson’s next portfolio auction in Melbourne on Wednesday, February 27.
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Written by Adrian Ballantyne, Real Commercial
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