Big Retail Investment Opportunity with Big W in Mudgee Up for Sale

18 May 2022

A blue-chip retail investment property in one of NSW’s Central West CBDs has been listed for sale with leading agency Savills, highlighting significant growth in regional areas post-COVID19.

Occupying a prominent corner position at 72-78 Market Street in Mudgee, the property is fully leased to a strong performing Big W and BWS Liquor with two complementary national brand retailers.

The substantial single-level retail property represents the largest freestanding retail tenancy in the thriving Mudgee CBD, with a rare ‘whole of land’ lease to Woolworths Limited excluding specialty shop area.

The 5,216sqm building boasts a total site area of 7,931 sqm and is securely leased to Woolworths Limited and Endeavour Group with 89% of income secured by Big W and BWS at conservative long- term sustainable base rents of $152psm and $641psqm respectively. Big W and BWS account for 96.88% of the property’s total GLA.

Boasting three street frontages, the property features convenient on-grade parking for 70 vehicles in addition to substantial surrounding street and Council carparking providing over 300 spaces.

“This property presents an excellent opportunity to secure a prime retail investment, and illustrates major growth in regional areas, particularly off the back of COVID-19,” said Steven Lerche – Savills National Director.

Big W completed a significant, circa, $1.5m Mudgee store upgrade and solar addition in 2021, and has experienced strong annual sales growth, with percentage rent expected near term and MAT growth during the 2019-2021 financial years averaging over 12%+ annual growth.

“Big W represents a highly sought-after investment in the up-and-coming Mudgee region, with no other discount department stores within the main trade area of comparable scale. Following the recent $20 million sale of a dated and long-established Target store in Bendigo, reflecting a 5% yield, the sale of Big W Mudgee is very likely to set a new benchmark result,” said Andrew Palmer – Savills Associate Director.

Regional investments have experienced significant demand post-COVID19 with Bunnings Mount Isa selling for $16.2 million at a yield of 4.29% in May 2022 and another Savills-sold investment, Woolworths Wagga Wagga, selling for $20 million with a 4.23% yield in December 2021.

With high investor demand, Big W Mudgee is superbly positioned within the town’s CBD, amongst a wide range of cafes, restaurants, retail business and community services. Listed in TripAdvisor’s 2021 Top 10 Emerging Destinations around the world, Mudgee is located some 265km north-west of Sydney in the fertile Cudgegong River Valley and is home to over 40 vineyards, proving as a major drawcard for the town’s tourism industry, attracting almost 500,000 visitors each year.

Big W Mudgee is offered for sale by Expressions of Interest closing 3pm (AEST) Wednesday 15 June 2022.