Tasmanian liquor store leased to Woolworths sells on 8.5% yield after failing to attract a buyer under the hammer

A liquor store in the Tasmanian north west coast rural town of Wynyard has sold for $2.105 million soon after being passed in as part of a Burgess Rawson portfolio auction.

The Woolworth’s leased BWS branded store was the only non-Victorian commercial property to be auctioned among 25 retail properties spread across Melbourne, Sunbury and Geelong.

Woolworths pays net rent of $178,888 per annum equating to a yield of around 8.5%.

The 500 square metre liquor store on a 1,983 square metre site with a drive-thru and two street frontages was acquired by Woolworths in December 2011, modernised and rebranded as a BWS store in 2012.

Woolworths has a 10 year lease on the 1950s-built property with renewal options to 2041.

It includes an agreement for turnover rent of three cents for every dollar in gross sales generated by Woolworths.

According to auctioneer David Scholes from Auctionworks, turnover is up 20% since Woolworths took over the lease and rebranded the store as BWS.

The long-standing liquor business adjoins the Wynyard Hotel.

It last sold for $1.6 million in June 2007, according to RP Data, equating to an annual capital gain of 4.68% per year.

Bidding started at $2 million with two bidders competing.

It passed in on a vendor’s bid of $2.2 million.

The property was marketed ahead of its auction by David Webster of Knight Frank Tasmania along with Shaun Venables and Billy Holderhead.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer


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