Officeworks-anchored retail investment
Shepparton Retail Hub, a fully-leased retail offering in Victoria’s fifth largest regional city, Shepparton, anchored by Officeworks, has been brought to market by Colliers Tim McIntosh and James Lawson in conjunction with Stonebridge’s Rorey James and Justin Dowers.
Anchored by Officeworks, one of the best-performing retailers in Australia and one of the most sought-after by investors, Shepparton Retail Hub benefits from a long WALE of 6.17 years, with 57% of the centre’s total 3,820sqm GLA secured by Wesfarmers with leasing options until 2038.
Representing the only Officeworks within a 105km radius, servicing far beyond its local catchment, the offering is also bolstered by leading national and chain retailers, including Metcash’s The Bottle O’Warehouse, ASX-listed Club Lime Gym and Red Rooster, providing a combined net income of $819,937 per annum when fully leased.
Colliers’ Director for Retail Middle Markets Victoria, Tim McIntosh, said, “Regional retail investment sales activity across Victoria has been scarce in supply yet highly sought after in our top 10 regional cities.
Investors, particularly local and interstate, have seen the attraction in Victoria’s 50% stamp duty concession and continued population growth as key drivers to align with tenants growing trading performance.”
Rorey James, Partner at Stonebridge, said, “The defensive nature of the retail sub-sectors has seen the assets become even more highly sought after by investors, who are seeking income security through non-discretionary speciality tenants, built-in rental growth, all underpinned by robust demographic characteristics and population growth.
“Across 2023, there has only been one Officeworks investment sale nationally, showcasing the rarity of such an asset. Large Format Retail and neighbourhood centres are being actively targeted both by established and emerging capital seeking the security of an ‘essential services’ income, particularly in strong growth locations and long-term underlying land value.”
Shepparton Retail Hub occupies a strategic 1-hectare site with prominent exposure to 22,000 vehicles passing daily along the Midland Highway.
Further underpinned by favourable activity centre zoning, a low site coverage and potential for future value-added in the short- to medium-term.
The retail hub is centrally located in Shepparton CBD’s core retail and commercial precinct, just 500 metres from Shepparton Railway Station, surrounded by national retailers Woolworths, Coles, Kmart, ALDI, Chemist Warehouse and JB HiFi, benefitting from exposure to pedestrian and vehicular traffic, 190kms north of the Melbourne CBD.
The established city has a significant GDP of $4.1 billion, and with a population forcasted to grow by 16.3%, from 68,952 reported in 2022 to 81,905 by 2036, this is expected to continue to increase.
Shepparton also benefits from consistent government spending on infrastructure, including the Shepparton Train Line upgrade that will boost connectivity and convenience, with three upgraded stations, ten extra train services and modern VLocity trains to Shepparton for the first time.
Shepparton Retail Hub is being offered for sale via an Expressions of Interest campaign, closing at 2pm (AEDT), Wednesday, 29th November 2023.
