Colliers International exclusively appointed to sell 19th Hole Shopping Centre
A Victorian private investor is looking to capitalise on record retail investment conditions by offering their shopping centre in Woodend to the market for the first time in 50 years.
The neighbourhood shopping centre anchored by Coles, Target Country and Mitre 10 represents only the fourth Victorian neighbourhood shopping centre to be offered to the market this year, considerably less than recent times, with the last three years seeing an average of 16 neighbourhood shopping centres transact annually.
Colliers International’s Tom Noonan and Tim McIntosh have been exclusively appointed to sell the 19th Hole Shopping Centre in Woodend, approximately 70km north-west of Melbourne and the only full line supermarket in the main trade area.
Mr Noonan said the agents expected significant local and offshore interest given the significant value-add upside on offer, coupled with the severe lack of retail investment stock in Victoria currently.
“2016 has seen only three neighbourhood shopping centres offered to the market in Victoria, whilst institutional and private investor demand for this asset class is at unprecedented levels. Yield compression in this market sector continues, with recent sales exceeding those seen pre-GFC."
“Value-add neighbourhood shopping centre opportunities are presently some of the most sought after assets in the market."
The centre is situated on an 18,201sqm site with four street frontages and is anchored by a strong trading Coles supermarket, Target Country and Mitre 10, mini-major Cellarbrations liquor, 18 specialty shops and a BP service station. The property generates an estimated net income of approximately $1.5million per annum.
Mr McIntosh said the centre occupied a high exposure location, centrally positioned on Woodend’s core retail strip, with 70% of the centre occupied by national retailers based on GLA. National retailers include; Coles, Target Country, Mitre 10, Cellarbrations, BP, Australia Post and Salvos.
“The centre was originally developed in 1966 as a local supermarket and has subsequently been expanded, developed and refurbished over the last 50 years with most recent development taking place in 2013 offering significant depreciation benefits.” he said.
“Woodend benefits from convenient proximity to the Calder Freeway, the main arterial link between the Melbourne CBD and the major nearby regional city of Bendigo. In addition, Woodend Train Station on the Bendigo line offers convenient access to the CBD."
The property is for sale by Expressions of Interest closing Wednesday September 28 with price expectations close to $20million.