Mossman Woolworths sold to Melbourne investor
LOCAL BUSINESS
A Melbourne investor has capitalised on the considerable benefits and financial opportunities by purchasing Mossman’s Woolworths for $23.75 million, JLL Retail Investment has confirmed.
“The premium supermarket presented a highly sought-after investment opportunity with a secure income stream and guaranteed growth from an expected base rent review of five per cent every five years, with the next review scheduled for June 2019,” said JLL’s Senior Director of Retail Investments, Jacob Swan.
The only Woolworths north of Cairns was built in 2014 by Town and Country for about $15.4 million and includes a development approval allowing for future expansion to both the Woolworths Supermarket and for additional specialty floor space. The freestanding single-level supermarket complex is on 3947 sq m and there is a Bottle-O liquor store adjacent to it.
“There was strong interest from investors, syndicators and funds management groups who were attracted to Woolworths Mossman due to its performance and low threat of new competition, with the closest full line supermarket in Port Douglas (Coles),” said Swan.
JLL’s Sam Hatcher said the centre was another perfect example of private investors seeking steady cash flow from retail investments in the form of Freestanding Supermarkets.
“They are known to be defensive to external factors such as an economic slowdown, changes in household discretionary spending capacity or changes in financial market conditions,” he said.
He said the centre was in a major growth corridor in the heart of the far north Queensland tourist region.
“The population of Mossman and Port Douglas swells significantly in peak tourist seasons, with overall tourist expenditure estimated to be approximately $489 million from 668,000 visitors in 2016.
“The Main Trade Area (MTA) is forecast to see a 4.68% average annual growth in retail expenditure between 2017 and 2031,” he said.
JLL is the brand name of Jones Lang LaSalle Incorporated and is a leading professional services firm that specializes in real estate and investment management.
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