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

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.


Sign up to receive our FREE
Weekly Insights Newsletter.

We don’t spam! Read our privacy policy for more info.

Check Also

ASX AREIT Weekly Update 1/7/2022

The ASX200 AREIT Index this week was down -2.8%.