The property, located at 34-36 Tuaggra Street and 103 Napier Street, Maryborough, is being offered for sale with a highly sought-after net lease in place which gives investors the comfort of knowing that 100% of all outgoings are the responsibility of the tenant, including statutory Land Tax which in most cases is not recoverable by Landlords. In addition, the investment offers the security of tenure via an unrepeatable 24-year lease expiring October 2034, plus options.
The attractive net lease structure backed by ASX-listed Woolworths Group also offers rental increases of 10% at the first option period and 5% for options thereafter, which is another ‘investor-friendly’ lease aspect that is seldom seen in Woolworths leases and guarantees rental growth.
Sitting on a commanding commercial 1-zoned site of 9,699 sq m, the supermarket and BWS store comprises a large full-line store of 4,294 sq m and is currently returning a net income of $944,215 per annum. Most importantly, Woolworths Group have almost completed a significant $9 million refurbishment of the store which is set to include a dedicated Direct to Boot offering in addition to internal and external upgrades. Works are due to be completed in November 2023.
Speaking on the opportunity, Rick Silberman, Director, Retail Investments at Savills said, “This is one of the best supermarket investments I have seen in my time. Generally speaking, freestanding supermarkets have always been a high-demand asset which is exacerbated by how rarely they become available.
“However, this particular property stands out as result of its attractive net lease structure, long-term lease of which there are 11 years remaining and Woolworths’ commitment to the property demonstrated by spending $9m on a store upgrade which includes a Direct to Boot facility to greatly enhance everyday convenience for customers.”
“As such we expect the asset to attract interest above $17 million,” Mr Silberman said.
Stephen Bolton, Director, Retail Investments at Savills added, “Woolworths Maryborough is forecasted to reach percentage rent during its initial term which will prove highly appealing to prospective purchasers. It is a quality and generational investment opportunity, made all the more appealing by a long-term lease to Woolworths Limited, an ASX giant and Australia’s largest supermarket chain.”
Woolworths Maryborough is prominently positioned on the high-exposure northern corner of Tuaggra and Napier Streets, providing excellent visibility and ease of access within the heart of Maryborough’s retail activity core.
The property is mostly surrounded by retail, commercial & service-based tenants, and residential uses and is situated within immediate proximity to excellent transport amenities including Maryborough Station, located 500 metres south of the property, providing train services to Melbourne.
Located approximately 40 km north of Ballarat and 55 km south-west of Bendigo, in the geographic heart of Victoria, Maryborough is home to just over 13,483 people and is the economic centre of the Central Goldfields Shire.
Woolworths Maryborough is being offered for sale by Expressions of Interest (EOI) closing at 3 pm AEDT on Thursday 16 November 2023.
