Bungendore's IGA supermarket is for sale - with an existing lease

A brand new IGA supermarket, which recently opened in Bungendore, is now for sale.

Just on 40 kilometres from Canberra, the freestanding supermarket sits on a 7636 square metre site and is anchored by a 15-year lease to Metcash Limited, trading as IGA.

The supermarket building occupies a space of nearly 2000 square metres and includes ancillary liquor and on-site customer car parking for 114 vehicles.

The prospective sale represents a new era for the supermarket that was born out of several years of community protest at the prospect of the site becoming home to fresh food giant, Woolworths.

CBRE’s Justin Dowers, Nick Willis and Mark Nicholls are marketing the freestanding supermarket property via an Expressions of Interest campaign closing on September 14.

Dowers says the sale was prompted by an increase in retail investment activity in 2017.

“Retail transactional activity in New South Wales was coming from a low base in 2016 that saw stock levels 45 per cent below the previous year,” he says.

“This limited supply and pent-up investor demand has carried into a strong first half of 2017 with approximately $250 million worth of neighbourhood and freestanding supermarket sales.”

• Related: New IGA opens in Bungendore
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• Related: How Woolworths wrong-footed Bungendore IGA

Dowers says a lower-for-longer lending environment and instability in other markets was increasing demand from new investors looking to enter the property market.

“Many investors are naturally attracted to supermarkets due to their large landholdings and secure leases,” he says.

CBRE colleague Nicholls says the property’s strategic location in a high growth catchment, as well as its position on the main route from Canberra to the south coast, underpin its strong appeal.

“The supermarket is in the town centre and services a catchment of more than 10,500 people  and it’s only 30 minutes from the nation’s capital,” he says.

“Bungendore and surrounding areas like Wamboin and Bywong, continue to experience an increase in Canberra locals moving away from the ACT.”

Aside from its proximity to Canberra and Queanbeyan, Bungendore is only around a 90-minute drive to Batemans Bay.

The property, which opened as a supermarket earlier this year, generates a net income of about $515,000 per annum and is expected to sell for more than $8.5million.

“We’re receiving a lot of interest as this is the kind of asset that has strong appeal,” Nicholls says.

BUNGENDORE

34-40 KINGS HIGHWAY (IGA)

PRICE GUIDE: $8.5 million-plus

EOI: Closing 2pm, Thursday, September 14

AGENT: Mark Nicholls, Nick Willis, Justin Dowers, CBRE, 0417 239 551, 0409 595 803, 0438 098 805

INSPECT: Contact agent

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