Victorian Dan Murphy’s anchored retail investment sells for $13 million off-market

Collier’s Tim McIntosh, Director of Retail Middle Markets, has recently transacted a Dan Murphy’s anchored retail investment for $13 million off-market, reflecting a 5.76% yield.

Centrally positioned within the Shepparton CBD and adjoining a popular Aldi supermarket, the retail investment boasts a 46% weighting to Dan Murphy’s and supported by five specialty retailers across 2,732 square metres of GLA.

Tim McIntosh said, “The strong off-market result reinforces the continued investor demand for strategically located retail investments anchored by leading ASX-listed national retailers.

“Investors are more discerning, prioritising retail investments where there is high-conviction of continued consumer demand, income preservation and attractive rental growth within the robust catchments.

“Typically, one Dan Murphy’s liquor outlet requires a catchment population of around 70,000 persons to trade well, with at least 50,000 required for a moderate trading outlet. The total trade area of Shepparton comprises a population of 126,130 (2021), forecasted to reach 141,680 people by 2036.”

Shepparton, colloquially known as the ‘Food Bowl of Australia’, is the fifth largest regional city in Victoria with a thriving regional economy underpinned by the agricultre and tourist industry supported by smaller surrounding regional cities Echuca, Wangaratta, Cobram and Benalla.

The Shepparton asset occupies 6,650sqm of Activity Centre Zoned (ACZ) land, prominently located on Goulburn Valley Highway, with direct exposure to over 25,000 vehicles passing daily, approximately 190 kilometres north of Melbourne CBD.

“Dan Murphy’s occupies a valuable landholding within the core retail precinct of Shepparton, surrounded by national retailers including Coles, Aldi, Kmart, Target, Chemist Warehouse, Hungry Jacks, KFC and JB Hi-Fi,” said Mr. McIntosh.

The last retail investment anchored by Dan Murphy’s to transact in Victoria was in Armstrong Creek, 100km west of Melbourne and supported by KFC and Hungry Jacks, along with five specialty shops. Tim McIntosh negotiated The sale exclusively off-market on behalf of Wel.Co, selling to HMC Capital for $21.5 million in October 2021, reflecting a 5.0% yield.