Big returns for The Good Guys outlet
Yet another deal has been cut for a The Good Guys outlet, as a large portfolio of stores leased to the bulky goods giant continues to find favour with investors.
The latest store, in Ipswich, sold for $6.25 million after nine The Good Guys stores across Australia were offloaded in July.
An original portfolio of 15 stores owned by the Muir family was put on the market earlier this year, with 12 of them located in New South Wales and Victoria.
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Investors carved off portions of the portfolio, with one store at Caringbah selling for a staggering $30 million. But six stores, including the Ipswich outlet, remained on the market or were in the final stages of finalising a purchaser.
The Ipswich store has now sold to a private investor, with the price for the 190-192 Brisbane Rd property reflecting a 7% yield.
Savills’ Jon Tyson brokered the deal and says large format retail remains one of Australia’s boom sectors, with the Ipswich property attracting interest from 120 potential buyers throughout the campaign, and generating multiple offers.
“Demand for large format retail assets remains strong across the nation and we see no change in the immediate future,” Tyson says.
“Large format retail centres were the best performing asset class of 2016, and the recent sale of the Good Guys Ipswich highlights the continuing demand for these properties.”
“For a sector that was largely unloved during the GFC, it has come full circle with a range of investor groups now chasing this retail asset class.”