Double pass: Two Village Cinemas hit the market
A Village Cinema building in Geelong and another in Albury have been listed for sale with expectations of $14 million each.
The 11 screen cinema offering at 194-204 Ryrie Street in Geelong is the refurbished art deco Geelong Theatre, operating as Village Cinemas.
It is being marketed by CBRE’s Justin Clarkson and Jamus Campbell with the Albury Village Cinemas, a large scale cinema and retail complex at 450-460 Dean Street. The Albury building (pictured above) was originally constructed in 1926.
Clarkson noted the stable investment opportunity presented by both properties.
“With long term leases attached, these two assets provide an attractive opportunity to acquire secure income streams underpinned by profitable businesses in two established and growing regional cities,” said Clarkson.
“These iconic buildings also benefit from a central location in the heart of their respective retail and commercial centres.”
Clarkson expects that strong yields and rental growth will drive demand for the buildings. Currently the Albury property is returning $1,374,829 per annum in rental income, setting rental yield at 9%. The Geelong cinema brings in $1,214,981 each year, with a yield about 8.5%.
“Both leases have generous annual built-in rental growth provisions throughout their respective terms, providing an annual additional uplift in returns,” Clarkson said.
The properties are being offered for sale separately or together via an expressions of interest campaign until 8 May.
