Geelong Woolworths to join slew of retail sales

The procession of major Geelong retail assets to hit the market has continued, with Lara’s new Woolworths supermarket the latest to test investor appetites.

The recently constructed property, which also includes a BWS liquor outlet, is leased to the grocery giant for at least the next 12 years.

Spanning 4195sqm on an 8804sqm site with 241 car spaces, the freestanding supermarket is expected to create a flurry of interest, according to agents, due to the lack of quality retail investment stock currently available.

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The listing comes after a string of major retail sales in the region in recent months.

Coles continued the run with the divestment of a supermarket and Liquorland outlet at Drysdale in January for $23.5 million, after selling Torquay Village Shopping Centre for $35 million less than a year ago.

And Bellarine Village Shopping Centre at Newcomb also sold last year for $36.5 million.

Meanwhile, Drysdale Village shopping centre, anchored by a Woolworths supermarket, continues its search for a buyer after being listed in recent months,.

CBRE’s Mark Wizel, who is marketing the Lara property with Justin Dowers and Kevin Tong, says supermarkets remain popular with investors as they are not subject to the same market forces as other retail assets.

“Standalone supermarkets are like gold to investors and have been over a long period of time and in many instances have produced very strong results. That has been due to some of the best investment credentials you will find in any commercial property asset including long leases, blue-chip tenants and high underlying land value,” he says.

“Non-discretionary spend tenants, like Woolworths, with an exceptional track record of performance, add another level of tenancy security which is particularly attractive in uncertain times.”

“Asian buyers in particular have demonstrated a penchant for retail assets of late with those properties offering significant land components at the top of the list.”

Dowers says the supermarket will be attractive for its prime town centre location, tax depreciation benefits on the recently constructed building, on-site parking, three-street access and its growing local catchment.