This article is from the Australian Property Journal archive
A PRIVATE investor is hoping to make the most of favourable retail market conditions by putting their 19th Hole Shopping Centre in Woodend on the market for the first time in 50 years.
It is just the fourth Victorian neighbourhood shopping centre to be offered for sale this year, following three years that averaged just 16 transactions in the sector.
Located in the Macedon Ranges, the 19th Hole is on an 18,201sqm site and is anchored by Coles, Target Country and Mitre 10, and also includes mini-major Cellarbrations liquor, 18 specialty shops and BP service station, for a combined net return of around $1.5 million per annum.
Colliers International’s Tom Noonan and Tim McIntosh are marketing the property via expressions of interest closing Wednesday, September 28 with hopes of fetching close to $20 million.
Noonan said they significant local and offshore interest is expected given the significant value-add upside on offer, coupled with the severe lack of retail investment stock in Victoria currently.
“2016 has seen only three neighbourhood shopping centres offered to the market in Victoria, whilst institutional and private investor demand for this asset class is at unprecedented levels. Yield compression in this market sector continues, with recent sales exceeding those seen pre-GFC,” he said. “Value-add neighbourhood shopping centre opportunities are presently some of the most sought after assets in the market.”
McIntosh said the centre occupied a high exposure location, centrally positioned on Woodend’s core retail strip, with 70% of the centre occupied by national retailers based on GLA.
“The centre was originally developed in 1966 as a local supermarket and has subsequently been expanded, developed and refurbished over the last 50 years with most recent development taking place in 2013 offering significant depreciation benefits,” he said. “Woodend benefits from convenient proximity to the Calder Freeway, the main arterial link between the MelbourneCBD and the major nearby regional city of Bendigo.
“In addition, Woodend Train Station on the Bendigo line offers convenient access to the CBD,” McIntosh said.
Australian Property Journal
