Rare chance to buy a JB Hi-Fi store

Adrian Ballantyne

First published 06 July 2018, 2:22pm

The JB Hi-Fi store in Ballarat, Victoria.

A store that is home to home entertainment behemoth JB Hi-Fi will be among the star attractions at a portfolio auction event next month.

The Ballarat retail outlet, which is leased to JB Hi-Fi until 2022, with options to 2027, will go under the hammer at Burgess Rawson’s investment portfolio auction in Melbourne on August 1.

A part of a larger retail precinct that includes a Woolworths, Coles, Dan Murphy’s, Big W and Rebel Sport, the store has 39 car spaces of its own and three street frontages totalling 210 metres.

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The store occupies just over 1200sqm of a 2718sqm site and currently attracts around $290,000 in annual rent.

Burgess Rawson director Jamie Perlinger says investors are increasingly looking to regional centres to find value.

The Ballarat JB Hi-Fi store.

“In recent months, the demand for regional retail assets has increased. Investors have recognised the significant benefits associated with these assets. Cost of living pressures in the inner-city areas is forcing young couples, downsizers and families into the regional areas. Investors understand that these urban centres are continuing to expand, therefore giving them greater confidence to invest in these areas.

“They offer long-term investment opportunities, five-year plus leases and the yields are more attractive when compared to metro areas. Prices average between $1 million to $5 million with average yields between 5-7%.”

Also on the block at the portfolio auction is an Autobarn store in Bendigo and a brand new Tradelink showroom in Sale, in the state’s east.