Investment opportunity in booming Ballarat

Melbourne, 30 May 2016 – The strength of Victoria’s retail investment market is set to be further demonstrated with the upcoming sale of an Officeworks tenanted site in Ballarat.

CBRE’s Joseph Du Rieu, Mark Wizel and Justin Dowers have been appointed to sell the 4,857sqm retail holding, located at 116 Creswick Road, Ballarat Centre.

The site features a substantial freestanding building of 2,117sqm, ample parking, recent façade improvements and high exposure to Creswick Road – the main arterial thoroughfare connecting the Ballarat CBD with the growing Wendouree residential precinct.

The property benefits from a new eight year lease to prominent national retailer Officeworks, with option for up to 12 years extension. The site represents one of Officeworks’ most sizable outlets, and provides a stable annual income.

Mr Wizel said the site’s strategic position in a tightly held area with limited competing premium retail investment stock would be a key factor underpinning buyer interest.

“The opportunity to acquire a significant footprint in regional Victoria’s growing retail market should attract interest from a wide pool of buyers, with offers expected in excess of $6 million.”

“The recent sales of Officeworks Vermont South (4.9% initial yield) and Officeworks Woollongabba (5.8% initial yield) indicate that there is exceptional demand from the buyer market when these types of investments are offered for sale,” Mr Wizel said.

Mr Du Rieu added the sale would be supported by the strong future growth projected for the Ballarat market, with the area expected to increase to 139,600 residents by 2031.

“The government is actively encouraging the growth of Ballarat, as demonstrated by the $20 million employment and housing boost plan announced by Victorian Minister for Planning, Hon Richard Wynn, on May 2, 2016. This should support further growth for businesses in the area, including Officeworks, and in turn increase the investment appeal of the site,” Mr Du Rieu said.