Strong demand for quality leased retail investments has underpinned the sale of a freestanding Dan Murphy’s Liquor Superstore in Wagga Wagga for $10.1 million.
A Sydney-based investor swooped on the asset, which is located at the corner of Edward and Flinders streets in the heart of Wagga Wagga’s city centre.
Positioned on a 3,746sqm site, the property comprises a recently constructed store spanning 1,413sqm, which is currently leased to Wooloworths’ liquor chain, Dan Murphy’s.
CBRE’s Nick Willis said the property’s tenancy profile attracted strong buyer interest during the sale campaign.
“We received strong interest despite the regional location, as investors broaden their pursuit to acquire retail investment properties in this low supply market,” Mr Willis said.
“Investors’ confidence in the regional location was underpinned by the continued performance of the Woolworth Ltd backed Dan Murphy’s covenant, coupled with the fact that it is the only full line liquor store within more than 100km in any direction.”
The property, which sold at a yield of 5.2%, benefits from a prominent highway location adjoining the Wagga Wagga railway station, and adjacent to the CBD.
CBRE’s Justin Dowers said the sale came as Australia’s retail investment market continued to gain momentum.
“Our national team approach delivered over 100 enquiries for this particular asset, with strong interest from New South Wales’ and Victorian investors, as well as offshore groups,” Mr Dowers said.
“This further highlights the strong interest from international buyers looking to secure retail investments, with our most recent transactions to Chinese buyers including Bunnings Yarrawonga (4.9%), IGA Nagambie (6.1%) and Pakington Stand Shopping Centre (4.9%).”
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 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 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.
