Cobram’s Target store to go under the hammer

The Target store in Cobram sold for $2.2 million.

A prominent Target store in a key regional Victorian hub will be high on investors’ wish lists at Burgess Rawson’s Investment Portfolio Auction later this month.

The Target outlet at Cobram on the Victoria-New South Wales border offers a blue-chip lease to Wesfarmers, with a well-established long-term tenancy.

The property at 21-27 High St will go under the hammer on Wednesday, February 27 at Crown Casino in Melbourne.

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Occupying a prime 1472sqm site and located at the intersection of two major retail strips, the store also has a 30m retail frontage and has been under the Target brand for more than 15 years.

With a recently renewed lease to March 2024 and options to 2039, it currently returns $160,000 in annual rent, with Wesfarmers paying all the usual outgoings, including single holding land tax.

The property is being marketed by Burgess Rawson’s Ingrid Filmer, Shaun Venables and Scott Meighan, in conjunction with local agent Kerr Real Estate’s Andrew Kerr.

Filmer says a recent nationwide review of the Target brand saw a sharpening of its offering, with the most profitable stores – including Cobram – retained.

“Target is now through this process and stores that have received renewals are a testament to their being successful in their own right,” she says.

“In occupation for over 15 years, and now on a renewed five-year term, this property offers the security of a key national retailer in an important key regional hub.”

According to Wesfarmers’ 2018 annual shareholders report, last year its department store revenue grew 3.65%, while the company invested $293 million in its current stores.

Burgess Rawson’s first Investment Portfolio Auctions of 2019 will see 50 properties valued from $700,000 to $30 million up for grabs across two days in Melbourne and Sydney.

Target Cobram will be auctioned at 11am on Wednesday, February 27 in the River Room at Crown Casino Melbourne.