The Shepparton Coles supermarket and Kmart department store have been listed for sale by retail developer Lascorp.
Situated in the heart of Shepparton’s CBD, the freestanding property is anchored by new 15-year leases to both Coles and Kmart, generating an income of $2.35 million per annum.
The property, which sits on a 21,750sqm site, is expected to attract interest in excess of $40 million.
CBRE’s Mark Wizel and Justin Dowers have been appointed to market the property on behalf of Lascorp via a public expressions of interest campaign.
Mr Wizel said the property represented an outstanding opportunity to purchase a high quality and well-designed freestanding supermarket and Kmart store in a strong regional location.
“Given its central location, coupled with the convenience of access to over 561 at grade car parks, this property is ideally positioned to service the some 50,000 residents living in Shepparton,” Mr Wizel said.
“Over the past 24 months we have seen yields for freestanding supermarkets and neighbourhood shopping centres sharpen substantially on a national basis, with the sector attracting both local and offshore buyer interest as a result of continued improved sentiment towards retail performance.”
CBRE’s Justin Dowers said securely leased retail assets continued to be sought after in the current market.
“What is so important about the Shepparton Coles and Kmart stores is the turnover growth, which they are currently benefiting from,” Mr Dowers said.
“This has been further enhanced by a significant refurbishment in 2013 to both stores, as well as the Vaughan Street retail strip.”
Lascorp’s Michael Lasky Commented on the property:
“Since we purchased this property, Shepparton has undergone significant growth, with major redevelopments on Maude and Vaughan streets injecting new life and activity into the CBD,” Mr Lasky said.
“Moreover, the council has earmarked the corner of Maude and Vaughan streets to be the home of a new central bus interchange for Shepparton, which will boost linkages around the CBD. The continued investment from the council into the area has and will continue to provide strong growth year on year for both Coles and Kmart.”
The offering of Coles and Kmart Shepparton follows the successful sale of both Arena Shopping Centre ($48.1 million / 5.38% yield) and Woolworths Highton ($12.43 million / 4.67% yield).
Situated in the heart of Shepparton’s CBD, the freestanding property is anchored by new 15-year leases to both Coles and Kmart, generating an income of $2.35 million per annum.
The property, which sits on a 21,750sqm site, is expected to attract interest in excess of $40 million.
CBRE’s Mark Wizel and Justin Dowers have been appointed to market the property on behalf of Lascorp via a public expressions of interest campaign.
Mr Wizel said the property represented an outstanding opportunity to purchase a high quality and well-designed freestanding supermarket and Kmart store in a strong regional location.
“Given its central location, coupled with the convenience of access to over 561 at grade car parks, this property is ideally positioned to service the some 50,000 residents living in Shepparton,” Mr Wizel said.
“Over the past 24 months we have seen yields for freestanding supermarkets and neighbourhood shopping centres sharpen substantially on a national basis, with the sector attracting both local and offshore buyer interest as a result of continued improved sentiment towards retail performance.”
CBRE’s Justin Dowers said securely leased retail assets continued to be sought after in the current market.
“What is so important about the Shepparton Coles and Kmart stores is the turnover growth, which they are currently benefiting from,” Mr Dowers said.
“This has been further enhanced by a significant refurbishment in 2013 to both stores, as well as the Vaughan Street retail strip.”
Lascorp’s Michael Lasky Commented on the property:
“Since we purchased this property, Shepparton has undergone significant growth, with major redevelopments on Maude and Vaughan streets injecting new life and activity into the CBD,” Mr Lasky said.
“Moreover, the council has earmarked the corner of Maude and Vaughan streets to be the home of a new central bus interchange for Shepparton, which will boost linkages around the CBD. The continued investment from the council into the area has and will continue to provide strong growth year on year for both Coles and Kmart.”
The offering of Coles and Kmart Shepparton follows the successful sale of both Arena Shopping Centre ($48.1 million / 5.38% yield) and Woolworths Highton ($12.43 million / 4.67% yield).
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 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.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 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.
