CENTRAL SALE

Torquay Village offered to investors

TORQUAY Village is up for sale, with the shopping centre in Gilbert Street to hit the market later this month.

The shopping centre is being touted to investors as anchored by a full-line Coles supermarket and Liquorland and accompanied by 15 specialty shops, occupying a strategic 1.4-hectare land parcel in the heart of the Torquay town centre.

Coles Group Property Developments bought the site formerly known as Torquay Central in 2013, and the shopping centre underwent a major redevelopment and extension in 2015.

Torquay Village will be sold by expression of interest through commercial real estate firm JLL, which expects to attract a price of about $40 million.

Secured by a 15-year lease to Coles, the shopping centre offers investors a weighted average lease expiry (WALE) by income of 10.17 years, with more than 81 per cent of income generated by national retailers.

“The market is constrained of quality retail investment opportunities and the Victorian neighbourhood market remains the most tightly held in the country, a key factor that will drive investor interest in Torquay Village,” JLL Victorian retail investment director Stuart Taylor said.

“The Torquay catchment is a standout growth area in Victoria, and will continue to drive the performance of assets such as Torquay Village.”

JLL is talking up Torquay’s population growth as an asset to potential buyers, saying the town grew by more than 67 per cent between 2001 and 2013 – the fourth-largest growth in all of Australia’s major urban areas.

“The centre benefits from a large main trade area accommodating in excess of 22,010 residents and is forecast to grow to 30,800 by 2031 – an increase of 28.5 per cent for the period,” JLL Victorian retail investment director Mr Noonan said.

“Torquay has been a popular holiday destination for generations. However, the growth it is experiencing is primarily being driven by the boom in permanent residents that are flocking to Torquay for the lifestyle and amenity that the area offers.”

JLL says Torquay Village will be the first Coles-anchored Victorian neighbourhood shopping centre available for sale this year – the three sales in 2017 so far all being Woolworths-anchored centres.

Last year, two Coles-anchored centres traded hands (Springhill and Coburg Village) for $43 million and nearly $38 million, respectively.