Standalone Woolworths Lara to test the market
The listing of the standalone Woolworths Lara supermarket will test the market for a product that has long been an investor favorite with their non-discretionary spend and long lease profiles to blue chip tenants.
Located at 50 Centreway, the recently constructed , freestanding, 4195 square metre supermarket, sits on a generous 8804 square metre site with 241 car spaces. The property, which includes a BWS store, is let on a 12 year term. The rental was not disclosed.
CBRE Director Investments, Mark Wizel, who is marketing the property with Justin Dowers and Kevin Tong, said he expected a strong response from hungry and cashed up investors in a market short of quality investment stock.
“Standalone supermarkets are like gold to investors and have been over a long period of time and in many instances have produced very strong results. That has been due to some of the best investment credentials you will find in any commercial property asset including long leases, blue-chip tenants and high underlying land value.
“Non-discretionary spend tenants, like Woolworths, with an exceptional track record of performance, add another level of tenancy security which is particularly attractive in uncertain times,’’ Mr Wizel said.
He said the fact that there was a lot of money out there – offshore and local – looking for a home in property, and that quality assets were in short supply, would ensure Woolworths Lara attracted a strong field of suitors.
“Asian buyers in particular have demonstrated a penchant for retail assets of late with those properties offering significant land components at the top of the list,’’ Mr Wizel said.
Mr Dowers said the prime town-centre location, tax depreciation benefits on the recently constructed building, on-site parking with access from three streets, and the growing local catchment were also attractive attributes.
“Population growth in the Geelong district has been driven at least partially by an influx of buyers from Melbourne’s over- heated residential market. Lara seems well placed, on the northern Princes Highway approach to Geelong and within relatively easy commuting distance of Melbourne, to absorb some of that influx and of course that will impact the retail catchment,’’ Mr Dowers said.
According to population experts .id the population of the City of Greater Geelong is estimated at 251,540 in 2019 and forecast to grow to 325,779 by 2036.