Aldi anchors big prices hopes for Geelong shopping centre
The major retailers of this northern Geelong shopping centre might be discount specialists, but the complex is not expected to sell cheaply after hitting the market.
A popular northern suburbs neighbourhood shopping centre anchored by German supermarket Aldi and a major discount retailer isn’t expected to sell cheaply.
Bell Park Plaza is a high performing neighbourhood shopping centre on Anakie Rd, Bell Park, where there are also six convenience specialty tenants.
Expected to sell for more than $20m, the property offers a strategic investment with solid long-term growth potential for new owners.
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Burgess Rawson’s Raoul Holderhead, Shaun Venables and Zomart He, in conjunction with JLL’s Stuart Taylor, Tom Noonan, and MingXuan Li have listed Bell Park Plaza in an expressions of interest campaign closing on April 3.
The complex is on an 11,350sq m landholding with direct access via a dedicated traffic light to Anakie Rd, where it has 130 metres of prime exposure and 143 at-grade carparking spaces.
The shopping centre draws the majority of it income from Aldi and Cheap as Chips but is fully leased to daily needs tenants, including a medical centre, pharmacy, real estate agency, and a bottle shop, ensuring new owners a stable net income stream of $1.196m, plus GST.
The weighted average lease expiry across the complex is 5.67 years, but Aldi holds a 15-year lease expiring in 2032.
But data shows there is growth available as the centre features low gross specialty rents of $348 per square metre, well below the Urbis benchmarks, and provides guaranteed income growth with CPI or fixed annual rental increases across all leases.
The agents say it’s potentially a low-maintenance investment, given it underwent a major redevelopment in 2017, delivering the modern design.
The low number of specialty shops within the centre also reduces management time required.
Mr Holderhead said Geelong is one of Victoria’s fastest-growing regions, with significant infrastructure developments and a booming local economy.
“This continued growth, combined with its strategic position in the state’s retail sector, makes properties like Bell Park Plaza an exciting investment opportunity for long-term capital appreciation,” he said.
Mr Taylor said the property provides a rare and compelling investment proposition, with centres anchored by an Aldi supermarket rarely presented to the market.
“This lease, combined with the non-discretionary nature of the tenancy mix, provides investors with exceptional income security.”
Originally published as Aldi anchors big prices hopes for Geelong shopping centre