Colliers International brings Wangaratta’s only large format retail centre to market
Wangaratta’s sole large format retail centre has hit the market, marking the first Victorian retail centre to be offered for sale in 2017.
Wangaratta Retail Centre, which is 100 per cent leased to national tenants and anchored by Officeworks and Spotlight on long-term leases, is expected to fetch more than $8million.
Colliers International’s Tom Noonan and Jeremy Gruzewski have been exclusively appointed to sell the 12,000sqm retail holding via expressions of interest.
“Given the limited opportunities to acquire retail centres in 2016, the Wangaratta Retail Centre is expected to attract significant buyer interest from both local and offshore investors,” Mr Noonan said.
“Last year we saw yields for Victorian large format retail centres sharpen substantially, with the sector attracting national buyer interest as a result of improved sentiment towards retail performance.”
Mr Noonan said average large format retail yields sharpened 211 basis points in the 12 months to December 2016.
“There were only three publically offered large format centres brought to market in 2016,” he said. “This culminated with the recent sale of Sunbury Showrooms, on the outskirts of Melbourne, which sold for $14.88million to an offshore Chinese group, showing an initial yield of 6.52 per cent.”
Mr Gruzewski said Wangaratta Retail Centre represented a sound investment based on its exceptional weighted average lease expiry of 5.90 years, plus a net rental income of $575,418 a year.
“The centre offers security and peace of mind to potential buyers and in a market starved of investment product, this is a golden opportunity,” he said.
“There is also significant upside through the adjoining 3,517sqm mixed-use-zoned land, which has potential to be developed into further retail to complement the existing tenancy mix.”