Ballarat’s Troon Group has listed its brand new Ballarat Lifestyle Centre as the large format retail sector enjoys relatively good times on the back of COVID-19 related government stimulus and spending trends.
Located on a massive 11,710m2 site at 29 Cherry Flat Road, Delacombe, the property comprises a fully leased 3,765m2 (GLA) centre with 175 car spaces, returning an annual net income of $740,490 from five separate tenancies, including The Salvation Army, Autobarn, RB Sellars and Beds R Us.
The Centre was developed by Troon Group, which has been prominent in the precinct, having successfully developed the Delacombe Town Centre (DTC) and adjoining Bunnings Warehouse.
An expressions of interest sales campaign is being managed by Stonebridge Property Group’s Justin Dowers, Kevin Tong and Philip Gartland in conjunction with Colliers International’s Mike Crittenden, Tim McIntosh and James Wilson.
Dowers said the property was likely to attract significant interest given the increasing demand for regionally located investments, driven by an improved outlook on population growth as well as significant stamp duty savings.
He said the fact that Victorians were unable to travel and/or take holidays meant that expenditure, which was now available for home improvements, was a further driver of large format retail sales.
“Somewhat fortuitously, COVID-19 has delivered a combination of extremely advantageous drivers for this retail sector,” said Dowers. “Many Victorians are stuck at home and, as a consequence, have become more aware of how their household functions, or doesn’t. That and the fact that they have funds available, via government stimulus and limited travel options, has been a boon for large format retailers.
“Regional Victoria has endured 2020 much better than Metropolitan Melbourne, which is promoting a population growth shift towards major regional hubs such as Ballarat.”
Crittenden said the new centre enjoys a prime position nestled between a recently completed 17,000m2 Bunnings Warehouse, and the Delacombe Town Centre anchored by Woolworths, Kmart and Dan Murphy’s. He added these established retailers and the further development are a strong pull for shoppers, even from a wider catchment area.
“Investors are being offered an asset with a strong existing income stream as well as the knowledge that the centrally located land component may provide potentially significant additional income prospects down the track,” said Crittenden. “Delacombe is a rapidly growing part of one of Victoria’s key regional cities and is expected to double in size over the next 20 years. That sort of growth will ultimately present any number of options to commercial landlords,” he said. He added that investors would also note the 5.5 year WALE and the guaranteed rental growth as all tenants are secured on net leases with fixed annual increases.