This article is from the Australian Property Journal archive
AROUND $30 million is expected for a Bunnings-anchored large format retail centre in the New South Wales Riverina region.
James Wilson and Alex James-Elliott of Colliers International are marketing Griffith Hometown via expressions of interest.
The 6.41-hectare site is on a high-profile corner of Kidman Way, the major southern arterial entry into Griffith, and Watkins Avenue.
Griffith Hometown is anchored by an 8,688 sqm Bunnings Warehouse – the only Bunnings – in the main trade area – and has 83% of the its income secured by national tenants, and a weighted average lease expiry by income of 6.35 years. Tenants also include Spotlight, Fantastic Furniture and Repco. The site has around 650 car spaces.
Wilson said large format retail centres anchored by a Bunnings are extremely attractive.
“As the only Bunnings Warehouse within the main trade area, the centre attracts customers from outside of the main trade area and is supported by a relatively affluent catchment.
He said the centre offers future proofing potential, given the opportunity to expand the Bunnings Hardware.
Syndicators, unlisted funds and high net worth private investors are expected to show interest.
James-Elliot said the relative yield/return available to investors through large format retail assets is currently very appealing.
“Given the recent interest rates cuts, investors are now more than ever seeking returns underpinned by long term leases to national tenants.”
Griffith is a regionally significant commercial and administrative hub for the wider region. Poultry company Baiada was established in the town and has grown to make Griffith the largest poultry producer in Australia, while the area supports significant citrus growing and has a strong winery offering. Local tourism draws more than three million visitors each year.
