Woolies to go under hammer

Sydney real estate agent Burgess Rawson director Darren Beehag says there have been strong enquiries for the building and property which is currently owned by a Melbourne investor. The site is expected to sell for $6.5 million.

“We have sold the Woolworths’ site in Gundagai and Coles property in a suburb of Melbourne recently, this type of sale is not unusual,” he said.

“We have had solid enquiries already in relation to this site.

 “Astute investors who can look past their horizons will see that the Woolworths’ supermarket in  Wellington is an opportunity they will not find in their own backyard.”

The site is only a few years old and the selling agent believes the modern supermarket is expected to sell at about $6.5 million reflecting a yield close to 8.0 per cent. 

Mr Beehag pointed out that in addition to a return well in excess of the cost, the property as an investment offers considerable income tax benefits, saving cash flow.

 “What makes this property particularly attractive is the price level of $6,500,000 for a modern Woolworths’ supermarket, whereas in the main capital cities price quantums are now exceeding $14million and with low yields. 

“An example is Burgess Rawson’s recent sale of Coles at Hallam, in Victoria, which achieved $15,610,000 on a yield of 5.96 per cent,” he said.

The agent says the Woolworths’ Wellington site at 3136m2 is the newest and arguably the most dominant supermarket in the town. 

It offers a secure investment on a lease and options through to 2062.

“With recent government approved $200 million windfarm plus a $700 million gas fired power station for the region, the long-term future for the Woolworths’ site looks bright,” Mr Beehag added.