This article is from the Australian Property Journal archive
IN the first regional Victorian freestanding supermarket transaction for 2024, Woolworths Ballarat in Wendouree has sold for just under $13 million.
Sitting just 5.5km out from the Ballarat CBD, the 2,169sqm store occupies a 6,394sqm Commercial 1 zoned parcel of land at 1203-1205 Howitt Street and includes around 116 at-grade car spaces on the title.
Jarrod Herscu, Stuart Taylor, Tom Noonan and MingXuan Li from JLL managed the sale via a public expressions of interest campaign to a private investor, with the indication on price mid 5%.
“The campaign received over 10 bids and was one of the highest enquiry rates in the last 24 months,” said Herscu.
“Considering the regional location and older state of the building this demonstrates the significant depth of capital for freestanding supermarkets. These investments have long been a highly coveted asset class in commercial real estate due to their highly defensive investment qualities.”
While the sale price was undisclosed, industry sources have the transaction at just below $13 million.
“As Victoria’s largest inland city, Ballarat continues to be on the radar of investors looking to capitalise on the strong population growth and 50% stamp duty savings,” said Taylor.
“The sale of Woolworths Ballarat continues our strong track record in the town with approximately $200m worth of retail investments sold since 2021 including Delacombe Town Centre, Alfred Square and Bunnings Delacombe.”
Prior to the sale, the property was held by a private syndicate for over 30 years, with Hirsch and UP partner Avi Silver reportedly purchasing the site for $1.375 million in 1990.
The property’s close proximity to the CBD and positioning on the corner of Howitt and Forrest Street means it benefits from approximately 20,000 vehicles passing daily.
With Ballarat expected to see its population frown by over 40% to 170,00 by 2041, underpinning the estimated economic output of $15 billion per annum.
“Whilst transaction volumes remain subdued in the retail sector, there is significant demand from well capitalised private investors,” added Noonan.
“These buyers are seeing this time in the cycle as an opportunity to secure prime assets which rarely become available for purchase from long-term holders.”
Back in March, a Woolworths-anchored neighbourhood shopping centre north of Perth that has just been completed by the supermarket giant’s construction arm Fabcot was listed for sale. While in Perth’s Eglinton, Cedar Woods sold sold two-hectares of shopping centre land to Fabcot for $13 million.
While last year, Woolworths sold a neighbourhood shopping centre in the Illawarra-Shoalhaven region in September to a Victorian investor for $40 million.
With a rare metropolitan Melbourne premium standalone supermarket with a secure lease to Coles was listed for the first time in four decades, also in March.
