Located at 1-7 Pearl Street, Leongatha, the 3,143 square metre store sits on a 3,267 square metre site which includes parking for 142 vehicles and will be sold with nine years of a 20-year lease to Woolworths remaining at a current income of $699,000 per annum.

 

CBRE head of Premium Property Portfolio Auctions (PPPA), Joseph Du Rieu, who is managing the sale, said the investment market was becoming increasingly hungry for such properties.

 

“This time last year we had seen the sale of six freestanding supermarkets and this year only three, but none of those offered turnover rent and that is going to drive further interest in what is an increasingly hungry market for this type of product,” Mr Du Rieu said.

 

He said there were several factors driving demand for standalone supermarkets including the 100 per cent non-discretionary spend tenancy profile, blue chip tenants, long leases and sites with strong underlying land value with future development potential.

 

“Adding to this potent mix of investment credentials is the increasing competition currently for property over other, perhaps more volatile, asset classes,” he said.

 

“Those property assets, such as supermarkets, that are regarded as defensive investments, are attracting that much more attention.”

 

Mr Du Rieu said the property also benefitted from Leongatha’s status as the principal town in the region of South Gippsland.

 

The property will be auctioned at CBRE’s next Premium Portfolio Auction on Thursday, October 10.

 

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