Colliers’ James Wilson and Tim McIntosh are exclusively bringing the brand-new freestanding Kmart Bairnsdale to market, secured by Wesfarmers until 2032, with further options to 2062.
Kmart Bairnsdale is the only full-line discount department store within a 66km radius, servicing far beyond its local catchment of 45,120 people, strategically located upon entry to Bairnsdale with direct exposure to Main Street, an arterial thoroughfare transporting over 7.67 million vehicles annually.
Colliers head of retail middle markets for Australia, James Wilson said, “It’s the first brand-new freestanding retail investment to be publicly marketed in Victoria since early 2021, being Coles Woodend, highlighting the limited number of high-quality retail assets.
“Competition has soared for freestanding retail assets during the first half of 2023 as 60% fewer assets have been brought to market compared to last year, which has led to very competitive bidding and strong results. Brand-new developments are also providing attractive depreciation benefits to drive tax-effective net income.
“There have been lots of activity in regional areas during the first half of 2023, as Melbourne and Sydney-based investors are capitalising on opportunities within regional Victoria, taking advantage of the 50% regional stamp duty concession.”
Kmart Bairnsdale is expected to attract interest in excess of $20 million, with the site leased by Kmart until 2032, generating a base income of $1,064,250 per annum, sitting on a 15,600 square metre mixed use zone site with low site coverage of 33% and 194 car parks.
Colliers director for retail middle markets for Victoria, Tim McIntosh added, “Kmart Bairnsdale is prominently positioned on Main Street, an exclusive gateway into the thriving Bairnsdale township. With over 90% of the town’s population residing on the north side of Main Street, Kmart Bairnsdale is directly exposed to 22,000 vehicles passing daily.
“The Shire’s estimated gross regional output for financial year 2022 was $5.33 billion, up 8% from the previous year. With Bairnsdale generating nearly half of the Shire’s total employment opportunities, it’s regarded as the main commercial hub for the region.”
Kmart has been a part of the local Bairnsdale community for a long time, having traded for 15 years, from 2005 to 2020. The decision was made to close the old department store and create a new asset.
Kmart Bairnsdale is being offered for sale via an Expressions of Interest (EOI) campaign, closing at 2:00pm (AEST) Wednesday 16th August 2023.