This article is from the Australian Property Journal archive
A WOOLWORTHS and BWS-anchored commercial centre in the New South Wales regional town of Gundagai is hitting the market, offering a treat for investors looking to fetch a low risk, sub-$10 million asset.
The 246-250 Sheridan Street property encompasses a 5,400sqm site and features a 56-metre frontage.
JLL’s Stuart Taylor and Dylan McEvoy are marketing the site on behalf of a private investor via expressions of interest closing July 11th.
Woolworths makes up more than 95% of the site’s income of around $400,000 per annum net, and has a 20-year lease from 2011 with options until September 2071.
The site has 60 on-site car spaces and rear street exposure via Sheridan Lane, allowing access to the Woolworths loading dock, and is opposite the Gundagai Tourist and Travel Centre and bus stop/interchange.
“We are noticing a resurgence of investors looking in regional locations for property with top-tier covenants. These regional opportunities offer attractive returns when compared to major urban areas like Sydney or Melbourne, of which many investors are priced out of these markets,” McEvoy said.
Taylor said retail assets with strong lease covenants such as Woolworths continue to be hotly contested.
“With high liquidity levels in the market, these assets attract investors as they are considered to be low risk, defensive assets, offering strong security of income,”
He said interest is expected from a broad range of private investors, particularly from Sydney, Melbourne and potentially Canberra given the asset’s strategic location just between the Victorian and NSW capital cities.
Australian Property Journal
