Bulky Goods Sale in Hoppers Crossing Nets $11m

Savills Melbourne CBD and Metropolitan Sales has just sold a major large format retail centre in Hoppers Crossing, in Melbourne’s west for $11,000,000 following an Expression of Interest campaign.

The property, located at 153-161 Old Geelong Road, Hoppers Crossing, is leased long-term to The Good Guys, a wholly owned subsidiary of ASX-listed JB HiFi, plus Goodyear Tyre & Auto, and Burson Automotive with a current net rental return of $694,600 per annum.

The property has a highly strategic landholding of 8,933 square metres within the City of Wyndham, a municipality with one of the fastest growing populations in Australia.

The property was transacted by Savills Directors, Clinton Baxter, Nick Peden and Steven Lerche.

“The property was keenly sought by investors, both local and off-shore, and was ultimately sold to a local investment group that specialises in the ownership of large format retail properties across Australia.

“With three blue-chip tenants, a fantastic location in a major growth corridor and underpinned by a large landholding, the property was precisely what the investment market is seeking, especially with bank lending becoming more difficult for sub-standard properties,” Mr Baxter said.

“We are witnessing a flight to quality as investors seek to satisfy the increasingly stringent banking environment.”

Mr Peden said that the selling yield of 6.3% was a strong result for the sector and the vendor, and was indicative of strong buyer demand plus the high quality of this asset.

“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. The property is in a proven commercial location, with a long history of successful trade,” Mr Peden said.