Nine Good Guys stores fetch good, good price in monster deal

The Good Guys-leased outlet at Caringbah in NSW sold for $30 million.
The Good Guys-leased outlet at Caringbah in NSW sold for $30 million.

Nine retail outlets leased to bulky goods chain The Good Guys have been sold for $92 million, in a series of deal spanning four states and involving multiple buyers.

And the sale is expected to grow even larger in the coming weeks, with another six Good Guys outlets in the final stages of being sold.

Realcommercial reported in April that the Muir family had put 15 stores leased to The Good Guys on the market, with 12 of the stores located in Victoria and New South Wales.

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A store at Caringbah in New South Wales accounted for almost a third of the total amount transacted, fetching $30 million, while a property at Bendigo in regional Victoria was the cheapest at $5.2 million.

Also sold were Good Guys outlets at Thomastown, Geelong and Ballarat in Victoria, Ballina in New South Wales, Ipswich and Cairns in Queensland and O’Connor in Western Australia.

Thomastown retail Good Guys

The Good Guys in Thomastown, Victoria.

Yields dipped as low as 6.25% for the metropolitan properties, while some of the regional properties sold on yields of almost 8%.

Savills directors, Clinton Baxter, Nick Peden and Steven Lerche handled the sales.

Baxter says negotiating the series of deals proved challenging, with many investors wanting to purchase different, overlapping combinations of the properties on offer.

“We expected strong interest from private investors seeking individual properties, but were particularly surprised by the numerous portfolio buyers seeking multiple properties across several states,’’ he says.

Good Guys Thomastown retail Victoria

The Good Guys store in Thomastown was one of nine that sold.

“We simply couldn’t satisfy all the portfolio offers due to overlapping property requirements, and ultimately chose to transact five of the properties with a Sydney-based investment fund and sell the other properties individually.’’

Baxter says the sale of five stores to one buyer group meant they could now move forward with the sale of the remaining properties.

“Of the original portfolio of properties we have been handling for the Muir family, it was crucial to the process that we finalised the single portfolio transaction before allowing individual properties to be sold,” he says.

“Now that has occurred, we are busy transacting the individual properties, with the opportunity offering exceptional value for investors at attractive yields.”

Lerche adds: “With The Good Guys being owned by ASX-listed retail powerhouse JB Hi-Fi Limited, investors feel extremely comfortable with the long-term security of the investment.  All properties are in proven commercial locations, with a long history of successful trade.”