Strategic repositioning of a vacant Spotlight into a brand-new Amart nets a significant value-uplift.
A brand-new Amart store in Shepparton that opened May this year has sold for $9.3 million after the vendor, Cal Doggett from Properties & Pathways, acquired the property vacant possession only 8-months earlier for $7.25 million, representing a 28% uplift in value.
Amart Shepparton, located at 175 Benalla Road was sold by an Expressions of Interest (EOI) campaign jointly handled by Colliers Retail Middle Markets Will Heffernan and Tim McIntosh, and Stonebridge agents Rorey James, Kevin Tong, and Justin Dowers, on behalf of the Properties & Pathways Managing Director.
The freestanding Large Format Retail (LFR) investment sold to a high-net-worth investor unconditionally with a short settlement following a competitive process that achieved over 330 enquiries.
Colliers Retail Middle Markets Executive, Will Heffernan, shared, “With over 330 enquiries, the sale highlights the strong demand for quality LFR assets. Boasting a brand-new 8-year lease, investors were attracted to the secured income and attractive fixed annual increases in a core retail location.”
Amart Shepparton occupies a substantial 8,094 sqm landholding and features a brand-new eight-year lease, with further options extending through to 2057. Amart Shepparton represents the retailers newest store, with the nearest existing Amart situated more than 170km away. The property features a high quality fitout, 130 on-site car parks, and convenient rear loading access.
Stonebridge Partner Rorey James said, “Generally speaking, the sentiment from the buyers continues to trend in a positive direction. Activity from all buyer types has increased over the recent months which has been buoyed by recent and further forecasted interest rate cuts. With this week’s announcement, we expect another wave of demand to enter the market looking to capitalise on a lowering interest rate environment.”
Formerly a vacant Spotlight, the asset was repositioned by Properties & Pathways into a thriving Amart Furniture store. This transformation highlights the resilience and growth of the LFR sector, with tenant demand and leasing execution driving significant capital appreciation.
Colliers National Director, Tim McIntosh, concluded, “Nationally, we are experiencing a significant increase in buyer competition for long-WALE retail investments. This flight to quality has translated to yield compression aligning with investors lower cost of finance. This sale comes just a month after our off-market sale announcement for Bunnings Clyde North for $44 million and sub 5%-yield on behalf of Charter Hall.”
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