Warrnambool set for bright future

Wednesday 6 February 2019

The Australian Bureau of Statistics yesterday released consumer spending figures for December that showed a slide of 0.4 per cent, leading to concerns for some retailers and their landlords.

However, there are many retail properties not affected by discretionary spending and investors in those assets need not be alarmed by the general downward sentiment, said Burgess Rawson director Jamie Perlinger.

Burgess Rawson’s next portfolio auction this month features many such assets that can withstand the whims of shoppers.

In fact, a number of the properties are located in centres where investors can expect considerable upside, such as Warrnambool.

“Currently in Warrnambool, we are offering an ANZ branch that was fitted out in 2014 with a lease to 2024,” Mr Perlinger said.

“A huge benefit of this commercial property, apart from the fact it is leased by a top ASX-listed company, is that the bank pays all outgoings including land tax.

“Another jewel in the town’s crown is Monaghan’s Pharmacy, which has been operating for more than 37 years and is part of a national chain of 51 pharmacies.

“This investment will likely deliver a very high-yielding return of between 8 per cent and 9 per cent.

“Investments such as these are rare, even in metropolitan areas.”

“Some three hours west of Geelong, Warrnambool is the state’s largest coastal city outside Port Phillip Bay.

“It services a catchment of more than 120,000 people, and in just over 15 years, the centre’s population is expected to grow by more than 30 per cent,” Mr Perlinger said.

“Further, unemployment in Warrnambool is lower than the Victorian average, a statistic which is enviable for a regional town, many of which have jobless rates that are higher than the state average.

“June quarter’s ABS data shows that Warrnambool’s jobless rate was just 3.75 per cent, which is the lowest of any Victorian regional city, and below the state average of 4.3 per cent.”

From an infrastructure perspective, the city and its 11 suburbs are served by 16 schools, a Deakin University campus, two hospitals, an airport with about 40 daily flights, and railway services to Geelong and Melbourne.

Adding momentum to Warrnambool’s economy is the tourist-related trade that travels up and down the Great Ocean Rd, including in winter for those drawn to the famed birthing nursery of the southern right whale.

“In the 12 months to the end of March 2017, 5.1 million visitors to Warrnambool spent a generous $1.2 billion in the area,” Mr Perlinger said.

The Burgess Rawson portfolio auction of 24 properties starts at 11AM on Wednesday February 27 in the River Room at Melbourne’s Crown.

To find out more about the properties in our portfolio, and how we can help you with sales, leasing and property management services, please contact us.

Originally published in the Herald Sun