This article is from the Australian Property Journal archive
A STRONG performing trading freestanding Woolworth’s investment in Victoria’s largest inland city of Ballarat is being sold by the co-owner of United Petroleum.
Occupying a 6,394sqm Commercial 1 site at 1203-1205 Howitt Street, Wendouree, with 116 at-grade car parks, the freestanding Woolworths spans 2,169sqm with a 20-year lease expiring 2030 with a 10-year option and returning $733,392 per annum
JLL’s Jarrod Herscu, Stuart Taylor, Tom Noonan and MingXuan Li have been appointed to manage the sale of the property via an expressions of interest campaign on behalf of Eddie Hirsch, co-owner at United Petroleum and Gabriel Amira.
Hirsch and UP partner Avi Silver reportedly purchased the supermarket in 1991 for $1.375 million.
“Freestanding Supermarkets have traditionally been an extremely tightly held asset-class, primarily held amongst private families for generations. Woolworths Ballarat provides investors with the opportunity to purchase a best-in-class Supermarket within one of the most thriving catchments in Victoria,” said Herscu.
The supermarket is located around 5.5km. north-west of the Ballarat CBD, sitting on the corner of Howitt and Forrest Street and benefitting from approximately 20,000 vehicles passing daily.
“Supermarket leased investments remain one of the most sought-after commercial property asset classes nationally. Particularly, those with ‘older’ style Net Leases where the tenant is responsible for all outgoings including land tax. These assets provide investors with exceptional income security, whilst protecting against the downside risk of rising expenses and taxes,” said Taylor.
Ballarat is Australia’s third largest urban inland city and the third largest city overall in the state.
The city is expected to see its population frown by over 40% to 170,00 by 2041, underpinning the estimated economic output of $15 billion per annum.
“Offered for the first time in over 30 years the store has been a consistent performer for Woolworths and services Ballarat’s most affluent suburbs including Lake Wendouree which has a median house price double that of regional Victoria average,” added Noonan.
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.
The expressions of interest campaign for Woolworths Ballarat is scheduled to close on 5 June 2024 and is expected to sell in the sub-$15 million range.
