WOOLIES ON SALE

$1.30

Kyabram Free Press - - FRONT PAGE - By Michael Mat­tingly

KYABRAM Wool­worths will go un­der the ham­mer at the 2018 Burgess and Raw­son Port­fo­lio Auc­tion on De­cem­ber 12.

Burgess and Raw­son is one of the largest com­mer­cial real es­tate agen­cies in Mel­bourne and its port­fo­lio auc­tion, to be held at Crown Casino, will see more than $50 mil­lion worth of as­sets up for sale.

Kyabram Wool­worths is one of three ma­jor supermarkets up for grabs on the day, along with Hamil­ton Coles and Bright IGA.

In its in­for­ma­tion mem­o­ran­dum, Burgess and Raw­son said free­stand­ing supermarkets were some of the most sought af­ter com­mer­cial prop­er­ties in to­day’s mar­ket with Kyabram Wool­worths net rent stand­ing at $1.14mil­lion a year.

“Wool­worths Kyabram is by far the most dom­i­nant su­per­mar­ket in the re­gion with sales for the three months end­ing Oc­to­ber 2018 up 8 per cent year-on-year,” Burgess and Raw­son said.

“Since re­de­vel­op­ment and ex­ten­sion in 2014, Wool­worth Kyabram has con­tin­ued on an up­ward tra­jec­tory.”

The build­ing is 100 per cent leased to Wool­worths un­til 2034 with op­tions to 2079, mak­ing it a safe in­vest­ment for po­ten­tial buy­ers.

Free­stand­ing supermarkets can range be­tween $10 mil­lion to $30 mil­lion, de­pend­ing on the town’s pop­u­la­tion and the build­ing it­self, and in­vestors can ex­pect any­where from 3-5 per cent in in­vest­ment yield.

For con­text, the Coles in Fern­tree Gully in Vic­to­ria re­cently sold for $10.5mil­lion, de­spite it hav­ing a de­clin­ing turnover per­for­mance.

The 3334sqm su­per­mar­ket comes with a stand­alone BWS out­let un­der the one lease and the land­lord’s in­come is based on $1.14m in rent plus turnover rent and any in­creases in out­go­ings.

Every five years the base rent in­creases to the av­er­age of the to­tal of the base rent and per­cent­age rent paid in the pre­vi­ous three years.

Kyabram Wool­worths was orig­i­nally de­vel­oped in 1970 and Burgess and Raw­son said af­ter a full re­build in 2014, ex­pan­sion and re­fur­bish­ment of the ex­ist­ing su­per­mar­ket saw vir­tu­ally a brand new store in most re­spects in­clud­ing a mod­ern ap­pear­ance and pre­sen­ta­tion.

The auc­tion will start at 11am on De­cem­ber 12.

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