NSW liquor stores expected to whet investors' appetites
Four NSW liquor retail spaces will go to auction in July.
The properties are part of a Burgess Rawson investment portfolio due to go to auction on July 2 and are all currently leased by subsidiaries of the Wesfarmers group.
Liquorland Belmont in Newcastle, First Choice Liquor in Naremburn, Vintage Cellars in Cremorne and Vintage Cellars Freshwater in Manly, each return an income in excess of $180,000 pa, according to Burgess Rawson.
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Liquorland Belmont comprises a strong corner position, onsite parking for 17 cars and is positioned opposite an Aldi supermarket and close to McDonalds and KFC. It comes complete with a five-year lease and options for a further 10 years.
First Choice Liquor Naremburn is the largest of the buildings, at 1,324 square metres, has a desirable corner frontage, onsite parking for 21 cars, and is located within a bustling retail village. It comes with a seven-year lease plus options for a further 20 years.
Vintage Cellars Freshwater is located in the sought after Sydney northern beaches, and includes a substantial four-bedroom, first floor residence. Both the retail space and the residence are leased for five years, with options for a further 10 years. Car parking and public transport are conveniently located immediately to the rear of the property.
Vintage Cellars Cremorne is located adjacent to the iconic Hayden Orpheum theatre in the Blue Ribbon, Lower North Shore landmark and has two street frontages on Military Road and Parraween Street. The 1,132-square metre property comes with a five-year lease and options for a further ten years.
Burgess Rawson agent Billy Holderhead says the liquor store market is receiving solid interest because private investors have confidence in the familiar brands that lease them.
“At the moment, you’ve got either Woolworths or Wesfarmers tenants. You get at least a 5-year lease term with solid tenants.
“If you’ve got a tenant you’re comfortable with and familiar with and read about on a daily basis, you feel more comfortable with that,” he says.
A further two First Choice Liquor stores in NSW were sold recently, one in Erina, which sold for $4.5 million and is expected to return a profit of $345,265 pa on a yield of 7.67%, and a second in Goulburn.
