ASX-listed tenants are drawcards to $60m regional Vic retail assets
Officeworks is the anchor tenant at the Shepparton Retail Hub.
Long-term ASX-listed tenants are the major attractions retail investments worth around $60m listed across regional Victoria.
Properties at Shepparton, Geelong and Warrnambool come to the market amid a time of scarce supply for tenanted investment opportunities.
Shepparton Retail Hub is a fully-leased retail complex anchored by Officeworks with a long weighted average lease expiry (WALE) of 6.17 years, including 57 per cent of the 3820sq m lettable floorspace secured by Wesfarmers with options until 2038.
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Colliers Tim McIntosh and James Lawson in conjunction with Stonebridge’s Rorey James and Justin Dowers, bring the property to market by expressions of interest closing November 29.
Representing the only Officeworks within a 105km radius, Metcash’s The Bottle O’Warehouse, ASX-listed Club Lime Gym and Red Rooster bolster the 1ha site, providing a combined net income of $819,937 per annum.
Colliers’ Victorian director for retail middle markets Tim McIntosh said regional retail investment sales activity has been scarce in supply yet highly sought after.
“Investors, particularly local and interstate, have seen the attraction in Victoria’s 50 per cent stamp duty concession and continued population growth as key drivers to align with tenants growing trading performance,” he said.
The defensive nature of the retail assets were attracting potential investors seeking income security through non-discretionary speciality tenants, built-in rental growth, underpinned by population growth, Mr James said.
“Across 2023, there has only been one Officeworks investment sale nationally, showcasing the rarity of such an asset,” he said.
Pakington Strand shopping centre in Geelong West is for sale, with sellers talking up its development potential.
Investors were targeting large format retail and neighbourhood centres, seeking the security of an “essential services” income, particularly in strong growth locations and with long-term underlying land value, he said.
The development potential is being touted for a major mixed-use shopping centre in Geelong West, where Woolworths has a 28-year lease with options to 2079.
Pakington Strand has been listed for sale with Stonebridge agents Kevin Tong and Justin Dowers and Colliers’ Mr McIntosh and James Wilson seeking expressions of interest by December 5.
Anchored by the full-line Woolworths supermarket and 13 specialty shops, three kiosks and an ATM, the centre provides strong trading income with potential for future development.
The mixed-use zone site offers the possibility for a major development comprising retail, commercial and residential uses, given it’s low 25 per cent site coverage and strategic location in Geelong West. Future development could take site coverage to 60 per cent.
The Coles supermarket in the Warrnambool CBD is on the market.
The property comes to market after Mr McIntosh and Mr Lawson listed the Coles supermarket at Warrnambool.
Coles Warrnambool is a 2670sq m freestanding retail investment 100 per cent secured by ASX-listed Coles Group with a 20-year lease commitment and options until 2048, currently generating a net income of close to $736,000 per annum.
Occupying 133-141 Lava St, Warrnambool, the offering represents the only full-line supermarket within the CBD.
