This article is from the Australian Property Journal archive
INVESTORS from Asia have already shown interest in Ivanhoe’s Woolworths supermarket in Melbourne’s inner east, which is expected to fetch more than $20 million as a trophy asset following a $4.9 million upgrade, offering depreciation benefits of around $14.5 million.
Savills agents Benson Zhou, Clinton Baxter, Julian Heatherich and Jesse Radisich are marketing the 3,552 sqm full-line supermarket and BWS at 72-84 Upper Heidelberg Road.
The property includes 178 basement car parks on title.
Baxter said Woolworths’ upgrade left few, if any, capital expenditure requirements, and the asset presented depreciation benefits of around $14.5 million.
Zhou said the agents has received a “decent level” of interest from Asian investors indicating a willingness to offer more than $20 million.
“Chinese investors have found a great level of security in the Woolworths brand so we’re also anticipating strong contest from this buyer group, particularly given the premium Ivanhoe location – one of the best suburbs they can expect to buy a full-line Woolworths in Melbourne,” he said.
A secure 15-year lease to Woolworths, with six five-year options to renew, generates $917,078 per annum net and is expected to attract buyers.
Expressions of interest close Wednesday, April 10 at 2pm.
Meanwhile, Stockland has progressed its $1 billion retail divestment program with the listing of Tooronga Village Coles shopping centre in Melbourne’s inner east.
The 8,973 sqm centre, on the corner of Toorak Road and Tooronga Road, has 30 specialty shops and brings in around $4.53 million per annum.
Stockland has just offloaded the Stockland Cleveland shopping centre Toowong retail and commercial centre, both in Brisbane, for $143 million.
In addition to some $400 million of assets earmarked for disposal, Stockland revealed last month it would look at divesting a further $600 million in non-core retail assets, as it aims to reweight its portfolio exposure to workplace and logistics assets from 21% to between 25% and 35% over five years.
Australian Property Journal
