This article is from the Australian Property Journal archive
WOOLWORTHS-anchored Drysdale Village has joined the Bellarine Peninsula town’s Coles on the market, with the private owners of two decades looking to take advantage the growth potential of the Geelong region.
CBRE’s Justin Dowers and Mark Wizel are marketing the fully leased 3,130 sqm neighbourhood centre, which sits on an 8,439 sqm site, via expressions of interest closing November 30.
As well as Woolworths, which has a 20-year lease until 2035, tenants also include Hommy’s Quality Meats, JR’s Café, Bakers Delight, National Australia Bank, United Pty Ltd, YanQun Wang, and a Tattslotto agency, as well as a Bank of Melbourne ATM and Hoyts kiosk, for a combined income of around $990,442.
It is believed the asset could fetch more than $15 million.
Dowers said the centre’s strong lease profile, location within 20 minutes of Geelong, and rapid population growth provide potential purchasers with a compelling investment opportunity.
“Geelong is one of Victoria’s fastest growing regions with a forecast 32% increase in population by 2036 while the Bellarine Peninsula is expected to experience an even stronger rate of growth delivering the sort of catchment which underpins the most successful neighbourhood centres.
“We are also seeing shopping centre investments in the Geelong region trade at similar returns and pricing levels to metropolitan Melbourne and that is very attractive to investors,” Dowers said.
Charter Hall Retail REIT paid $117 million for the Gateway Plaza shopping centre in Leopold, in Geelong’s east, to a fund run by Vicinity Centres in June, which followed a private investor acquiring the Woolworths-anchored Bellarine Village in Newcombe in May for $37 million, at a circa 6.3% yield, and Coles selling off Torquay Village Shopping Centre, south of Geelong, for $35 million at an initial yield of 5.89% earlier in the year.
More than $25 million is expected for the Drysdale Coles supermarket, which has also been put to the market by Coles among several other property offerings across the country ahead of its spin-off from parent company Wesfarmers next month.
“There is no doubt that Geelong and surrounds is now firmly on the radar of serious investors as it is for Melbourne residents seeking affordable housing options,” Wizel said.
He added that the commercial zoning of the site allows for more intensive mixed-use development, and would provide the successful purchaser with the flexibility to meet the changing demand for services and potentially add significantly to the value of the asset.
Australian Property Journal