Investors from across Australia have looked to source a central Bendigo retail gem, the Killians Walk - home of local icon Stearns Showcase Jewellery, which was eventually snapped up prior to auction for $1.050 million.
Fitzroys Agency Director, Mark Talbot sold the property with Burgess Rawson’s Graeme Watson, ahead of the Burgess Rawson’s opening Melbourne property portfolio auction event for 2018.
Talbot said a Melbourne-based buyer came out with the prize after a campaign that generated more than 130 enquiries from local and interstate interests.
The substantial 250sqm building has a corner frontage to Queen Street and Killians Walk, a busy pedestrian link between Myers and Coles and next to Officeworks.
The 144sqm ground floor space is used for retail and showcasing, while the first floor is utilised for service and production.
Stearns Showcase Jewellers has been operating out of Bendigo for more than 50 years and is the major regional city’s principal jeweller, operated by award-winning jeweller Rick Stearns who has 35 years of experience, and his daughter Rebecca Stearns. The family joined forces with national group Showcase Jewellers in 1995, which has around 170 outlets across Australia.
Talbot said the highly regarded tenant has shown their confidence in the property with the recent renewal in July of a 5+5-year deal until 2027, with a commencing annual return of $100,000 per annum.
“Investors recognised this, and wanted to take advantage of the secure terms to a an iconic local operator, and within a thriving regional city that is forecast to take its population from around 112,000 currently to more than 156,000 by 2036.”
He said regional centres are increasingly attracting investors from around Australia looking for prime retail assets in busy pedestrian locations, with strong lease terms to quality tenants.
Also during the summer, Fitzroys sold the primely positioned 449sqm corner retail asset nearby at 19-21 Mitchell Street, leased to ASX-listed Specialty Fashion Group, for $1.57 million.
Melbourne’s Beller Commercial has sold a quality strata retail space on Melbourne’s Punt Road for over $1.2 million.
The ground floor space, located below the George Windsor development in Windsor, is approx. 160 sqm and features an eye-catching yellow façade.
Marketed by Beller’s Liam Rafferty, the property was sold to a local investor on a sharp yield of 4.8%, proving once again great demand in the market for assets in premium city fringe locations, according to Mr Rafferty.
Local and interstate investors have pounced on the Vinnies op-shop in Ballarat’s Bridge Street Mall, which sold under the hammer at 35% above the reserve after a hotly contested auction.
Fitzroys Agency Director Mark Talbot and Graeme Watson of Burgess Rawson sold the property.
The 285 sqm shop at 60 Bridge Street Mall traded for $945,000 at a 5.29% yield, the tightest achieved at Burgess Rawson’s retail property portfolio auction held at Crown Casino recently.
Talbot said more than 120 enquiries were received during the campaign and 54 bids put forward at auction, with a Melbourne buyer winning out.
He said the property’s location in the Bridge Street Mall presented a rare opportunity to acquire a quality retail asset in the prime shopping precinct of one of Australia’s fastest-growing cities.
“Vinnies is a strong tenant that has been at this location for more than a decade, and has just renewed their lease on a 3+3+3-year deal with fixed 3% annual increases.
“Ballarat is Victoria’s third-largest city and is expected to welcome around 30,000 more residents over the next few years,” he added.
Mr Talbot said regional centres and locations are increasingly attracting investors from around Australia looking for prime retail assets in busy pedestrian locations, with strong lease terms to quality tenants as yield in the heated metropolitan markets continue to firm.
Last week, Talbot and Fitzroys colleague James Lockwood sold via on-site auction the Pharmasave in Ocean Grove, a centrally located strata retail asset in the popular retail village, for $2.465 million, $565,000 above reserve and at a sharp 4.1% yield.