Bathurst bottle shop quenches thirst

THE sale of Dan Murphy’s Bathurst achieved a regional NSW record, in an $11.187 million transaction at a yield of 4.5%, with essential service retail still pulling in investors.

In a record for this asset class, Dan Murphy’s Bathurst spans 1,282sqm of gross lettable area sitting on a 3,952sqm site, marking the first of the liquor store franchise to sell in 2021 and only the seventh in the last four years.

National director, retail investments Steven Lerche and Andrew Palmer from Savills negotiated the deal.

According to Lerche, the sale “reaffirms that non-discretionary retail continues to ‘hit the spot’ and other sales in this asset class so far this year include Woolworths Kyabram, Woolworths Greenvale Lakes, Coles Woodend.”

The sale of a regional Victorian asset, Coles Woodend, by Stonebridge recently to DeGroup, went for $33.3 million on a 4.31% yield.

With regional neighbourhood supermarket anchored shopping centres proving to still be a reliable bet for investors, with the sale of a Coles anchored asset in Swan Hill for $20,075,000.

While a  regional freestanding investment, Spotlight Plaza, in Victoria’s Sale has sold for $4.55 million at a circa 5.2% yield to a Chinese investor.

Demand for freestanding supermarket assets has led to a tightening of yields over the past four years, with private investors accepting lower returns seeing yields climb into the upper 3% range.

Lerche expects this trend to continue into the third and fourth quarter of 2021, due to investors seeking assets that can provide them with long term security and cash flow.

“Investor demand for this sector is due to historical low interest rates and of course: Non-discretionary, Security of income, Flight to quality and Ease of management,” said Lerche.