A winning quartet
A quartet of shops in one of Victoria’s best-performing regional cities has come to market, with the potential for investors to immediately increase their rental returns.
Anchored by growing discount retailer Cheap As Chips, the Bairnsdale property which recently underwent a $1 million plus redevelopment has three additional specialty retail tenancies including Flight Centre and a gourmet butcher, all of which will be auctioned in one line at Burgess Rawson’s Investment Portfolio Auction on December 9.
With the fourth shop, a former Bakers Delight currently vacant, the new owner of the properties at 58-66 Nicholson Street can boost their returns and yield in quick time, according to Burgess Rawson director Shaun Venables.
“Looking to get that shop leased fairly quickly will increase the fully let rent up from $258,716 per annum plus GST, to about $280,000,” Mr Venables said.
Occupying a major 3,655 sqm landholding with 93 car spaces on title and direct access from Riverine Street, the property is backed by a 10-year lease to Cheap As Chips until 2027, with a further 10-year option.
Positioned in the heart of the CBD near Woolworths, Coles, ALDI and Australia Post, the shops enjoy an exclusive and growing trade catchment of more than 42,000 people.
Mr Venables said that with ever-increasing retail competition in metropolitan cities, major regional centres were coming into their own as investment opportunities.
“In Bairnsdale and other regional centres, they’re isolated enough from competing commercial centres that they essentially own their trade catchments, with little competition,” he said.
“Bairnsdale has always been a strong centre and will continue to be.”
The offering also includes annual rent reviews as part of the lease agreement, with 81% of its income secured by Cheap As Chips.
Burgess Rawson’s Investment Portfolio Auction will be held at 10.30am on Wednesday, December 9.