Seymour Woolworths to be sold for first time since 1992
Seymour’s number one supermarket is to be put up for auction for the first time in 27 years, at a time when supermarkets continue to light up the commercial property investment market.
The Woolworths-tenanted property at 28 Wallis St is considered the dominant supermarket in Seymour and last sold in 1992 after being built in 1983.
The property was “future-proofed” by being constructed significantly larger than what was generally required at the time, according to Burgess Rawson agent Graeme Watson.
“It has stood the test of time and its modern size is in line with what is built today,” Watson says.
Watson, who is marketing the asset with Shaun Venables, says the building will continue to benefit from its outstanding central location, which gives Woolworths a strong presence in the minds of locals.
“This is the dominant supermarket in what is a satellite population centre to Melbourne, which located only 80km or one hour to the south. Due to this proximity, affordable housing and 22 train services to Melbourne each day, Seymour is moving ahead,” Watson says.
The Seymour Woolworths occupies a significant tract of land.
“The growth and strength of the location is evident by Bunnings having recently obtained a permit to develop a new store in central Seymour.”
“This will be an added attraction that is expected to increase Seymour’s customer draw in excess of the current estimate of 20,000. This makes Seymour’s future rosy.”
The supermarket enjoys a tenancy that began in 1983, with lease terms that include options to 2053.
The rare, old-fashioned lease has investor-preferred terms that has Woolworths paying outgoings in addition to rental.
Occupying an enormous 10,375sqm site that includes the 4675sqm store and extensive car parking, it has all usual departments and also includes a BWS liquor outlet. It currently returns a net $800,000 per annum from Woolworths, with a new percentage rental phase expected to commence in the next lease year.
The property is surrounded by major retailers.
The supermarket will be auctioned at Burgess Rawson’s upcoming Portfolio Auction at Crown Casino on Wednesday, October 30, with an expected sale price of circa $14 million.
Watson says the A-grade tenancy profile of supermarkets makes them a rare and exceptionally popular commercial property offering.
“Supermarkets continue to be viewed amongst the absolute cream of Australian commercial properties, given the quality and stability of their tenants and the major landholdings they occupy.”
“They generate some of the most substantial enquiry whenever we put one to market, as we saw with the sale of Coles Hamilton, which was sold by Burgess Rawson in December for $23 million.”
Burgess Rawson’s 132nd Portfolio Auction will be held in Crown Casino’s River Room at 11am on Wednesday, October 30.