Bunnings and supermarket trio on show at anniversary auction
A site leased to Bunnings, three supermarkets, two service stations and a Harvey Norman outlet are among a deep list of properties that will go under the hammer as commercial agency Burgess Rawson celebrates its 125th investment portfolio auction.
While the Bunnings in Hobart’s suburbs is set to be hotly contested, a Coles and a Woolworths in regional Victoria could be among the most expensive properties ever sold at the auction.
The Coles at Hamilton and Woolworths at Kyabram both attract annual rent of almost $1.2 million.
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The Woolworths is the largest in its region and is leased to the chain until 2034, with options to 2079, while the near-new Coles spans 3870sqm, is leased until 2035 and has two 10-year options to 2055.
The Woolworths at Kyabram in regional Victoria will be auctioned next months.
Meanwhile a third, smaller supermarket – a Supa IGA at Bright in Victoria’s alpine region – will also be on the block at a lower price point, with the 14 Ireland St property attracting $243,432 in rent annually.
With Bunnings-leased properties few and far between on the commercial property market this year, the store at Glenorchy is in line to draw considerable interest.
The 16,900sqm store commenced trading on its 38,310sqm site only three years ago and has a rare triple-net lease that runs to 2040, with another 25-year option to follow, along with annual 3% rent increases.
Burgess Rawson director Shaun Venables says blue-chip tenancies continue to curry favour with investors.
The Coles supermarket at Hamilton in regional Victoria.
“These prime assets which are all secured by favourable leases to Australia’s largest retailers – Wesfarmers, Coles and Woolworths are rarely offered to the investor market. Supermarkets and the successful Bunnings chain have always been highly desirable commercial investments for several reasons,” he says.
“Supermarkets and hardware stores provide essential services, and regardless of what is happening in the economy, these businesses always thrive.”
“Supermarkets generally provide leases not only underpinned by Australia’s largest retailers, but have lease structures in place that allow a landlord to obtain a share in gross sales in addition to rent, which is effectively making them a partner in the business. These highly sought-after assets also have the ability to withstand changing market conditions.
Also up for grabs at the agency’s Melbourne auction on Wednesday, December 12 will be a futsal centre at Ballarat, a Harvey Norman at Launceston in Tasmania at 7-Eleven in Perth and a La Porchetta restaurant in Shepparton.
