A Colac treasure offering affordable investment
One of regional Australia’s most secure yet affordable investment opportunities will be auctioned next month as commercial property buyers increasingly look beyond capital cities.
Occupied by the same discount retailer for 25 years, the retail property at Colac in Victoria has a well-earned reputation as the home of one of the region’s longest-standing and most successful businesses.
Leased to Treasure Hunters, 52-56 Murray Street (Princes Hwy) is expected to sell in the high $600,000 range when it is auctioned at Burgess Rawson’s Portfolio Auction event on Wednesday, December 9.
The property is secured on a renewed three-year lease to 2023, with options to 2029, and features a 645 sqm building on a 727 sqm site, with a 14m double shopfront and sought-after Commercial 1 zoning.
Burgess Rawson director Shaun Venables, who is marketing the property with Zomart He in conjunction with Charles Stewart and Co.’s Anthony McDonald, said the strength of regional assets had never been better demonstrated than throughout the COVID-19 pandemic.
“It’s a discount retailer that’s been able to trade throughout COVID, being an essential service, which further enhances the property’s credentials as a secure investment moving forward,” Mr Venables said.
“The business has well and truly stood the test of time, having been operated by different owners for around 25 years.”
The lease includes landlord-friendly terms including fixed rent increases, with the tenant to pay the majority of outgoings.
Mr Venables said the property was also perfectly placed to profit from both local and seasonal patronage.
“It’s on the Princes Highway, which carries a lot of the traffic from Melbourne as holidaymakers head down the coast,” he said.
“While it’s a strong regional centre with a permanent trade catchment that extends to the Great Ocean Road, it does enjoy the double benefit of additional traffic from seasonal population surges.”
The shop currently returns $48,000 in annual net rent.
Burgess Rawson’s final Investment Portfolio Auction of 2020 will be held from 10.30am on Wednesday, December 9.