Vacant Shepp warehouse flipped for $2m gain after Amart deal
The freehold property leased to Amart Shepparton at 175 Benalla Rd, Shepparton, has sold for $9.3m, realising a circa-$2m uplift in value after eight months.
An investor has turned a vacant Goulburn Valley retail warehouse into a golden opportunity, realising a $2m value uplift owning it for just eight months.
A new Amart Shepparton store that opened in May has sold for $9.3m after the freehold owner, Cal Doggett from WA-based investment firm Properties & Pathways, had acquired the vacant property only eight months earlier for $7.25m.
The 28 per cent uplift in value was realised after Mr Doggett repositioned the 8094sq m landholding at 175 Benalla Rd, which had been vacated by Spotlight, negotiating a secure eight-year lease for the national furniture and bedding retailer.
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The freestanding large format retail investment sold to a high-net-worth investor unconditionally with a short settlement following a competitive process that achieved over 330 inquiries.
The property was sold by an expressions of interest campaign jointly handled by Colliers Retail Middle Markets Will Heffernan and Tim McIntosh and Stonebridge agents Rorey James, Kevin Tong, and Justin Dowers, on behalf of the Properties & Pathways managing director.
Colliers agent Tim McIntosh said the property previously changed hands before Christmas.
“Since they’ve exchanged the property just prior to Christmas is negotiated and been able to secure a lease agreement with Amart shortly after settlement, worked through the process of putting the tenant and getting them open and trading,” Mr McIntosh said.
The buyers had initial conversations with Amart before the transaction, he said.
“They were purchasing with confidence and having an existing relationship with a retail, so that was really their competitive advantage,” Mr McIntosh said.
The secure eight-year lease has fixed annual rent increases.
National retailer Spotlight had vacated the property at 175 Benalla Rd, Shepparton, before the property previously sold in December 2024.
“It’s quite an attractive defensive retail investment in a really strong retail catchment.
“Shepparton is a really strong retail location, particularly within that precinct. There is much greater demand for people to be there.
“That’s where investors are equally encouraged and looking for opportunities across regional Victoria.”
Mr McIntosh said the $. 9.3m transaction now becomes a passive retail investment that secures the income from the secure eight-year lease with annual increases, but also changed hands without attracting stamp duty, given it’s the second time it’s sold within a year.
Amart Shepparton has further lease options extending through to 2057. The nearest existing Amart more than 170km away.
The transformation highlights the resilience and growth of the large format retail sector
“In the last few weeks particularly, we’ve known a significant increase in buyer demands, actively seeking retail investments, particular in regional areas where they’re strong catchments or strong covenants,” Mr McIntosh said
“Nationally, we are experiencing a significant increase in buyer competition for long-WALE retail investments. This flight to quality has translated to yield compression aligning with investors lower cost of finance.
“This sale comes just a month after our off-market sale announcement for Bunnings Clyde North for $44 million and sub 5 per cent yield on behalf of Charter Hall.”
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