This article is from the Australian Property Journal archive
A FULLY leased, Officeworks-anchored Shepparton Retail Hub has been brought to the market, offering a combined yearly net income of $819,937.
Shepparton Retail Hub has a weighted average lease expiry (WALE) of 6.17 years, with 57% of the centre’s total 3,820 sqm gross lettable area secured by Wesfarmers with leasing options until 2038.
Colliers’ Tim McIntosh and James Lawson in conjunction with Stonebridge’s Rorey James and Justin Dowers have the listing.
Representing the only Officeworks within a 105-kilometre radius, the offering is bolstered by national and chain retailers, including Metcash’s The Bottle O’ Warehouse, ASX-listed Club Lime Gym and Red Rooster.
“Regional retail investment sales activity across Victoria has been scarce in supply yet highly sought after in our top 10 regional cities,” McIntosh said.
“Investors, particularly local and interstate, have seen the attraction in Victoria’s 50% stamp duty concession and continued population growth as key drivers to align with tenants growing trading performance.”
James said the defensive nature of the retail sub-sectors has seen the assets become even more highly sought after by investors, who are seeking income security through non-discretionary speciality tenants, built-in rental growth, underpinned by robust demographic characteristics and population growth.
Across 2023, there has only been one Officeworks investment sale nationally, showcasing the rarity of such an asset.
“Large-format retail and neighbourhood centres are being actively targeted both by established and emerging capital seeking the security of an ‘essential services’ income, particularly in strong growth locations and long-term underlying land value,” he said.
Shepparton Retail Hub occupies a strategic one-hectare site with exposure to 22,000 vehicles passing daily along the Midland Highway, further underpinned by activity centre zoning and low site coverage.
The retail hub is centrally located in Shepparton CBD’s core retail and commercial precinct, 500 meters from Shepparton railway station, surrounded by national retailers Woolworths, Coles, Kmart, ALDI, Chemist Warehouse and JB HiFi.
Expressions of interest close Wednesday, 29th November.
