Woolworths supermarket in Ivanhoe listed with $20 million expectations

Ivanhoe’s Woolworths full-line supermarket and BWS has hit the market with expectations of more than $20 million.

The 3,552 square metre retail asset is located at 72-84 Upper Heidelberg Road.

Savills Australia’s Benson Zhou, Clinton Baxter, Julian Heatherich and Jesse Radisich have been appointed to market the property.

Zhou said they expected interest from private local and offshore investors. 

“We have three local agents and four Asian Services agents working timelessly on this campaign, and have been extremely busy answering enquiries from overseas and organising inspections,” he said.

“We have received a decent level of interest from Asian investors indicating their willingness to offer more than $20 million. 

“Chinese investors have found a great level of security in the Woolworths brand so we’re also anticipating strong contest from this buyer group, particularly given the premium Ivanhoe location – one of the best suburbs they can expect to buy a full-line Woolworths in Melbourne.” 

Zhou said the long-term lease to Woolworths Limited would be a drawcard for prospective buyers. 

“The 15-year lease covenant with six five-year options to renew is a secure investment proposition, generating a net income of about $917,078 per annum,” he said.  

Baxter said a recent $4.9 million upgrade to the premises was another key selling point.

“The asset presents significant depreciation benefits of about $14.5million,” he said. 

The property includes 178 basement car parks on title. 

Zhou said the retail catchment area would grow in line with the suburb’s population. 

“The City of Banyule’s population is forecast to grow to 147,098 by 2036,” he said. 

“As a result, there is increased residential development in the area, and a gradual upward trend in the value of building approvals.” 

Expressions of interest close Wednesday, April 10 at 2pm.