Rarely offered freestanding Officeworks to dominate at auction

PUBLISHED ON: 29/04/2021

A rare chance to purchase one of Australia’s longest-standing Officeworks stores is already generating heated attention from investors.

The iconic building just off the Hume Freeway will be auctioned next month as commercial property buyers clamour for essential services investments in the wake of the coronavirus pandemic.

The Wesfarmers-leased property in Albury was one of the office supply company’s first locations nationally, and its future is secured through a brand new six-year lease to 2027, plus additional options.

The store at 423 Smollett Street also benefits from its proximity to surrounding major retailers including The Good Guys, Dan Murphy’s, KFC, First Choice Liquor and Mercedes Benz.

It will be put on the block at Burgess Rawson’s 144th Investment Portfolio Auction event at Crown Casino on Wednesday, May 12.

Burgess Rawson director Billy Holderhead said opportunities to purchase blue-chip major retail properties of this calibre had been exceptionally rare in the past 12-18 months.

“There have been very few retail properties offered in this price range,” Mr Holderhead said.

“This is one of the only freestanding properties with a tenant and lease of this quality in this price range to hit the market since late 2019, and it could be some time before investors get another opportunity to purchase one like it.”

“It’s been less than two weeks since the property was launched to market and the immediate response has been very positive.”

Mr Holderhead said price expectations for the property were $10 million-plus.

Occupying a 4924sqm site with more than 95 metres of street frontage to the Riverina Highway, the property includes attractive net lease terms, with Wesfarmers paying all rates, insurance and land tax.

It currently returns $525,000 in annual net rent.

“The feedback from Officeworks is that this store is a very, very strong performer in their network,” Mr Holderhead said.

Co-agent Andrew Dixon of LJ Colquhoun added that Albury’s CBD was also undergoing a transformation, with high-rise developments beginning to form a part of the local cityscape and increasing the future options for large sites.

“In proximity to Officeworks is the new Hamilton residential apartments over six levels on Hume Street and an eight level opportunity has just been approved on Smollett St. Albury is going vertical,” Mr Dixon said.

“Years ago, in regional areas you wouldn’t have factored this in at all, but we’re already seeing it happening with the Mantra Hotel and the Tax Office building, and here you’ve got a prime site of almost 5000sqm that could lend itself to a wide range of higher uses in the coming years.”

The Albury Officeworks will be sold at Burgess Rawson’s Investment Portfolio Auction event at Crown Casino on Wednesday, May 12.