Woolies un­der the ham­mer


Shepparton News - - SNNEWS - By Michael Mat­tingly

Kyabram Wool­worths will go un­der the ham­mer on Wed­nes­day.

The auc­tion, part of 2018 Burgess and Raw­son Port­fo­lio Auc­tion, will see more than $50 mil­lion worth of as­sets up for sale.

Kyabram Wool­worths is one of three ma­jor su­per­mar­kets for auc­tion 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 $1.14 mil­lion a year.

‘‘Wool­worths Kyabram is by far the most dom­i­nant su­per­mar­ket in the re­gion with sales for the three months end­ing Oc­to­ber 2018 up eight per cent year-onyear,’’ Burgess and Raw­son said.

‘‘Since re-de­vel­op­ment and ex­ten­sion in 2014, Wool­worths 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 range be­tween $10 mil­lion and $30 mil­lion, de­pend­ing on the town’s pop­u­la­tion and the build­ing it­self and in­vestors can ex­pect any­where from three to five per cent in in­vest­ment yield.

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

The 3334 sq m su­per­mar­ket comes with a stand­alone BWS out­let un­der the one lease and the land­lord’s in­come is based on $1.14 mil­lion 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 de­vel­oped in 1970 and Burgess and Raw­son said after a full re­build in 2014, ex­pan­sion and re­fur­bish­ment of the ex­ist­ing su­per­mar­ket saw vir­tu­ally a new store in most re­spects, in­clud­ing mod­ern ap­pear­ance and pre­sen­ta­tion.

Burgess and Raw­son is one of the largest com­mer­cial real es­tate agen­cies in Mel­bourne and its port­fo­lio auc­tion, at Crown Casino, starts at 11 am Wed­nes­day. For sale:

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