Adelaide, 07 March 2016 – A retail offering with a secure lease to Westpac Banking Corporation, trading as Bank SA, is set to hit the market – providing a significant investment opportunity in the Barossa and Clare Valley regions only 40kms from the Adelaide CBD.
CBRE’s Ben Heritage and Harry Einarson, in conjunction with Peter Isaksson and Rino Carpinelli of Savills, will be negotiating the sale of 117 Murray Street, which is strategically located in the heart of Gawler.
The 406sqm site is being developed by Halifax Property to meet the Bank SA business operations, including custom fitout, ATM areas, security bollards and on-site customer parking.
Blue chip tenant, Bank SA has committed to the site on a seven year term commencing on the first day of business which is estimated to be August 2016. With an option for up to 10 years extension, this Bank SA branded branch will provide a secure income of $118,750 per annum.
Mr Heritage said Murray Street is the retail hub of Gawler and the gateway to the wider Barossa Valley region. With its close proximity to other major tenants including Woolworths, Big W and leading financial institutions, it’s easy to see why Westpac have committed to a long term lease for its Bank SA branch.
“Similar retail investments across the east coast and through the Adelaide commercial property market have been achieving extremely sharp yields, and we see this opportunity being no different given the high quality lease covenant of a top 5 ASX listed company,” said Mr Isaksson.
“Savvy investors will see this site as an opportunity to secure their cash flow for the next seven years, and at the same time have the added bonus of reaping the benefits of depreciation over the brand new development.”
“Given the substantial capital expenditure by the tenant, it’s evident they see this as a long term investment which will undoubtedly provide investors with confidence in the site. Gawler has experienced an 18.5% increase in population over the last 10 years, with an estimated 500 allotments to be developed per annum to keep up with this trend in the years to come,” added Mr Heritage.
