Strong investor demand for income producing assets has sparked the move to sell an IGA supermarket in Rushworth, regional Victoria.
Located at 18 High Street, the freestanding IGA is situated on a 1,731sqm main street site and comprises a building area of 600sqm.
The property, which is anchored by a five-year net lease to an experienced IGA operator, is located nearby national retailers including Bendigo Bank and Australia Post.
It also benefits from being adjacent the major development of the Goulburn Valley Aged Care facility - currently undergoing a major upgrade funded by the State Government. The asset provides a net income of approximately $70,000 per annum.
CBRE’s Joseph Du Rieu, who is selling the property with colleagues Kevin Tong and Tim Last, said the sale came amid strengthening demand for income producing assets in metropolitan and regional Victoria.
“Given investors usually require over $10 million to secure a Coles or Woolworths, independent supermarkets can provide an entry level alternative and are being perceived to have similar security now,” Mr Du Rieu said.
“Investments of this type can generally provide potential returns of 5.5% to 7.5%, which is highly attractive for both mum and dad investors, as well as other private buyers.”
Mr Du Rieu said the current upgrades to the Goulburn Valley Aged Care facility highlighted the State Government’s progressive stance on regional towns.
“We believe the buyer market will view the investment from the state government into the area as a major positive – it is not often you have the opportunity to buy real estate adjacent such a significant project.”
IGA Rushworth is being offered for sale via public expression of interest closing Thursday 26th April 2018.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.