Shepparton Retail Hub, a fully leased property with Officeworks as one of its highest-profile lessees, is up for sale.
Apart from Officeworks, the block’s other national and chain retailers include Metcash’s The Bottle-O Warehouse, ASX-listed Club Lime Gym and Red Rooster.
Combined, they’re providing net income of $819,937 annually when fully leased.
Colliers is marketing the property in conjunction with Stonebridge and said the property benefited from a long WALE, or weighted average lease expiry, of 6.17 years.
It also said 57 per cent of the centre’s total 3820 sqm GLA, or gross leasable area, was secured by Wesfarmers with leasing options until 2038.
“Regional retail investment sales activity across Victoria has been scarce in supply yet highly sought after in our top 10 regional cities,” Colliers’ director for retail middle markets Victoria, Tim McIntosh, said.
“Investors, particularly local and interstate, have seen the attraction in Victoria’s 50 per cent stamp duty concession and continued population growth as key drivers to align with tenants’ growing trading performance.”
Rorey James is a partner at Stonebridge and said he expected the property to attract a lot of interest.
“The defensive nature of the retail sub-sectors has seen the assets become even more highly sought after by investors, who are seeking income security through non-discretionary speciality tenants, built-in rental growth, all underpinned by robust demographic characteristics and population growth,” he said.
“Across 2023, there has only been one Officeworks investment sale nationally, showcasing the rarity of such an asset.”
The agents said the 1ha site’s attraction was further enhanced by being exposed to 22,000 vehicles passing daily along the Midland Hwy and being centrally located in Shepparton’s core retail and commercial precinct.
Shepparton Retail Hub is being offered for sale via expressions of interest, closing at 2pm on Wednesday, November 29.
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