![]() Asset Class: | Retail |
![]() Price: | $ 3580000 |
![]() Net Yield: | 6.00 % |
![]() Net Yield - including solar strategy: | % |
![]() Property Market Status: | Off Market |
This investment opportunity comprises two established tenants – Chicken Treat and Coffee Heads. <br>The development has just been completed in 2023 which gives the buyer substantial depreciation <br>benefits (depreciation schedule has been provided by the seller). <br> <br>The 1,991sqm freehold block is strategically located in the booming South-West of WA between <br>Busselton and Dunsborough – two very sought after towns that have multiple developments under <br>way to meet buyer demand. <br> <br>The property itself is in an exceptional position between the McDonald’s and Shell Coles Express <br>service station and within 100 metres of Coles Supermarket, Liquorland, Pharmacy, the Vasse Bakery <br>and the Vasse Village Bunbury Farmers market (currently under construction). <br> <br>Both tenants have signed up for long leases – Chicken Treat offers an initial 12-year lease (2035) plus <br>3x 5 years renewal options – 9 year WALE. <br> <br>Coffee Heads offers an initial term of 6 years (2029) plus 2x 5 years renewal options. Both tenancies <br>have fixed 3% annual increases with market reviews at renewal. <br> <br>The seller has given the tenants a rental incentive by capping outgoings for the first 2 years at $17k. <br>We have negotiated a cash payout of the shortfall to achieve a net rent of $215k pa over the initial 2 <br>year period (excluding management costs for the initial 2 years). <br>
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Location <br>Located approximately 220km south of Perth on Geographe Bay, the Busselton area is the centre of <br>the greater south-west region. Busselton has a resident population in excess of 40,000 people which <br>increases significantly during summer months with approximately 1.2 million tourists visiting the <br>region annually. <br>Busselton, Margaret River, Dunsborough and the Cape to Cape region being especially popular for <br>the world class surf, beaches, forests, wineries, restaurants, arts, culture and eco-tourism being the <br>main attractions. <br>Population Growth & Infrastructure <br>The population of The City of Busselton is forecast to increase at a rate of approximately 4% per <br>annum to 55,000 by 2026 with the broader south-west population to reach approximately 230,000 <br>residents in the same period. The South West’s transport infrastructure network includes extensive <br>road, rail and port facilities designed to accommodate the demands of various industries. <br>Linked to the capital city of Perth via modern bitumen-sealed roads, the City of Busselton is <br>accessible by major roads including the Forrest Highway, South Western Highway and Bussell <br>Highway. <br>Developments <br>To accommodate the population growth and facilitate an increase in tourism there are a number <br>of significant infrastructure projects underway and recently completed including; <br> <br>• A new $23m civic and administrative centre; and <br>• A $70m expansion to the Busselton-Margaret River Airport proposed for interstate and <br>international connections. <br>• Recent renovations and amenity additions to the foreshores at Busselton, Dunsborough <br>and Yallingup; <br>• New secondary school at Vasse; <br>• An upgraded $120m hospital and health campus at Busselton. <br> <br>For investors looking to be a part of this economic hotspot, there are commercial opportunities <br>available. The Central business districts in Busselton and Dunsborough offer tourism and retail <br>opportunities, while industrial land located in Busselton and Vasse industrial area is available for <br>commercial and manufacturing developments. <br> <br>There’s also huge potential to export agricultural produce and high-valued goods manufactured in <br>the region, and to invest in the current and future infrastructure required for a growing population. <br> <br>Over the past few years the development of several new residential estates – including estates in <br>Vasse and Port Geographe – and major projects like the Busselton Margaret River Airport have <br>contributed to the increase of dollars spent within the City’s construction industry. <br> <br>Busselton Airport <br>The newly upgraded Busselton Margaret River Airport services both private and commercial <br>activities, including transporting fly in fly out (FIFO) workers to the North West of Western Australia <br>iron ore mine sites, providing freight options for agriculture and manufacturing industries and <br>supporting the region’s growing tourism sector with commercial flights to and from Melbourne <br>having recently commenced which is expanding to Sydney within coming months. <br>The Busselton Margaret River Airport has the capability to service narrow and wide bodied aircraft <br>operations to destinations such as Melbourne, Sydney, Denpasar, Singapore, Hong Kong and China.
Additional Location Information FileCoffee Heads is a specialty coffee drive-thru and hole-in-the-wall cafe in Australia's South <br>West, Margaret River & Vasse area. <br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.coffeeheads.com.au/"><u>https://www.coffeeheads.com.au/</u></a> <br><br>3 pieces of succulent Crunchified Chicken, freshly marinated and hand-breaded in our signature <br>southern style coating alongside a serve of WA's favourite Chips. <br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.chickentreat.com.au/"><u>https://www.chickentreat.com.au/</u></a>
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<b>Gross Regional Product (GRP):</b> Sydney's GRP is a measure of its economic output and is a significant contributor to Australia's overall GDP.<br><b>Employment Rate:</b> Sydney generally has a healthy employment rate, although this can vary across different sectors.<br><b>Inflation:</b> Like most major cities, Sydney experiences inflation, which can impact the cost of goods and services.
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8 Birak Lane, Vasse – Chicken Treat – 179sqm - $838/sqm (net) 8 Birak Lane, Vasse – Coffee Heads – 66sqm - $982/sqm (net) 370 Victoria Rd, Malaga – KFC – 219sqm - $731/sqm (net) 370 Victoria Rd, Malaga – Coffee Club – 50sqm - $2600/sqm (net)
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●1,991sqm freehold block <br>●Building completion in 2023 <br>●Substantial depreciation benefit (depreciation schedule provided) <br>●2 buildings <br>●Net income $215,000pa + outgoings + GST <br>●NLA 245sqm ($877/sqm) <br>●17 car bays <br>●Long leases with WALE of 9 years <br>●Chicken Treat lease expiry 2035 with 3x 5 year options <br>●Coffee Heads lease expiry 2029 with 2x 5 year options <br>●High traffic route > Bussell Hwy +10,000 vehicles per week; Busselton Bypass +15,000 <br>vehicles per week (both routes passing past this property) <br>●High growth pocket between Busselton and Dunsborough (200km South of Perth) with major <br>developments underway