A Torquay grocery store contemporary from a $5 million improve has hit the market to check the extent of curiosity in “recession-proof” retail belongings.
The standalone Woolworths Torquay Central grocery store occupies a 7331sq m industrial zoned property within the city’s centre which additionally presents potential growth alternatives.
With a price pegged at round $20 million, the property has 4 avenue frontages.
The freestanding 2980sq m constructing on Bristol Street features a BWS retailer and is let on a 20 yr time period, expiring late in 2024 plus additional choices, with a passing internet earnings of $916,029.
There are 127 automotive areas on title and extra automotive areas on an adjoining council lot.
Stonebridge Property Group accomplice, Justin Dowers, who’s advertising the property with Kevin Tong and Phil Gartland, stated Woolworths just lately undertook a $5 million capital works program highlighting the retailer’s dedication to the placement.
“Standalone supermarkets are uncommon and extremely wanted by traders and have been over a protracted time frame and in lots of cases have produced very sturdy outcomes,” he stated.
“That has been on account of a number of the greatest funding credentials you can find in any industrial property asset together with lengthy leases, blue-chip tenants and excessive underlying land worth.
“Every day wants tenants, like Woolworths, with an distinctive monitor document of efficiency, add one other degree of tenancy and rental earnings safety which is especially engaging in unsure occasions,’’ Mr Dowers stated.
He stated the property could be offered with a internet lease construction to Woolworths/BWS, at an occupancy price ratio of below 3 per cent, and with a rising grocery store turnover.
The Surf Coast capital’s prosperous and rising inhabitants, on prime of the same old tourism exercise, underlined the growing turnover on the retailer.
Latest gross sales of freestanding supermarkets present sturdy demand mirrored in lots of cases in sub 5 per cent yields, together with Woolworths Lara which offered for $21.1 million in 2019 at a circa 5 per cent yield.
Two years earlier, Woolworths’ Highton grocery store achieved a 4.6 per cent yield in a $12.43 million sale.
Mr Tong stated the property represented probably the most substantial and strategic industrial landholding in Torquay, offering important scope for future mixed-use redevelopment given the central location reverse Taylor Park and 300 metres from the seashore.
“We’re not merely speaking a couple of recession-proof earnings stream from a blue-chip tenant, however a property which additionally presents distinctive growth prospects down the monitor on the gateway to the Nice Ocean Street – certainly one of Australia’s foremost vacationer locations,’’ Mr Tong stated.
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