A prominent Target store in a key regional Victorian hub will be high on investors’ wish lists at Burgess Rawson’s Investment Portfolio Auction later this month.
The Target outlet at Cobram on the Victoria-New South Wales border offers a blue-chip lease to Wesfarmers, with a well-established long-term tenancy.
The property at 21-27 High St will go under the hammer on Wednesday, February 27 at Crown Casino in Melbourne.
Occupying a prime 1472 sqm site and located at the intersection of two major retail strips, the store also has a 30m retail frontage and has been under the Target brand for more than 15 years.
With a recently renewed lease to March 2024 and options to 2039, it currently returns $160,000 in annual rent, with Wesfarmers paying all the usual outgoings, including single holding land tax.
Filmer says a recent nationwide review of the Target brand saw a sharpening of its offering, with the most profitable stores – including Cobram – retained.
“Target is now through this process and stores that have received renewals are a testament to their being successful in their own right,” she says.
“In occupation for over 15 years, and now on a renewed five-year term, this property offers the security of a key national retailer in an important key regional hub.”
According to Wesfarmers’ 2018 annual shareholders report, last year its department store revenue grew 3.65%, while the company invested $293 million in its current stores.
Burgess Rawson’s first Investment Portfolio Auctions of 2019 will see 50 properties valued from $700,000 to $30 million up for grabs across two days in Melbourne and Sydney.
Target Cobram will be auctioned at 11am on Wednesday, February 27 in the River Room at Crown Casino Melbourne
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Originally published by Real Commercial
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