 Asset Class: | Multi-Tenanted |
 Price: | $ 2730000 |
 Net Yield: | 7.45 % |
Net Yield - including solar strategy: | % |
 Property Market Status: |
A substantial multi-tenanted investment property located in the heart of Colac, Victoria. The site spans approximately 3,850m² of commercially zoned land with dual street frontage. This freehold property offers reliable income potential, with 11 tenancies including national retailer Petstock as the anchor tenant. The strength of location, along with multiple frontages and access points – provides <b>excellent future development potential. </b><br><br>The property consists of several solid brick and concrete buildings with zincalum and corrugated iron roofing. It features multiple retail spaces, a bowling alley, a café, offices, and two second-floor apartments. The buildings are well-maintained, with modern updates, ample parking, and development potential due to its multiple titles and dual access from both Murray and Bromfield Streets.<br><br>The property generates an annual net income of approximately $203,258, providing an impressive 7.45% net yield. The diversified tenancy mix and secure leases ensure consistent income, making this a stable investment asset. Comparable rent analysis indicates current rents are well below market, which will help to retain tenants, along with providing <b>potential rental upside.</b> <br><br>This investment is anchored by blue chip tenant Petstock, who are owned by ASX Listed Woolworths. Petstock hold a secure 10+10 year lease commencing in 2022 (potentially extending to 2042). Additional tenants include Colac Tenpin Bowl, cafés, a laundromat, a hairdresser, consultancy offices, community groups, and two residential apartments. Lease terms vary, with multiple long-term options, providing income stability.<br><br>Situated in Colac, a growing regional hub located 74km west of Geelong and 148km from Melbourne, the property benefits from high economic activity and a diverse local economy. Murray Street and Bromfield Street are key commercial areas, attracting national retailers and significant infrastructure investment. The property is a short distance from the Colac Train Station. The area's industries include agriculture, timber processing, and food manufacturing, ensuring strong tenant demand and long-term growth potential. <br><br>The asset also comes with a <b>potential 50% stamp duty saving</b>, currently applicable to commercial assets in regional Victoria. This represents a potential <b>$78,725 upfront saving on this propert</b>y.
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The vibrant rural city of Colac is located 74km west of Geelong and only 148km from Melbourne and also conveniently accessible to the major centres of Ballarat (100km) and Warrnambool(110km). Colac is a significant commercial, retail and industrial service centre in Victoria’s western district. Colac sits on the southern bank of freshwater Lake Colac and features Guilfoyle designed Botanic gardens. <br><br>Colac is the the largest city and administrative base of the Colac Otway Shire and provides a range of retail, commerce, industry, education, health and government services. Colac’s trade catchment of over 30,000 people extends beyond the borders of Colac Otway Shire and into the Corangamite, Surf Coast and Golden Plains Shires. This includes towns such as Lorne, Apollo Bay, Camperdown and Winchelsea to name just a few.<br><br>Colac’s busy commercial and retail centre is based primarily around Murray Street (Princes Highway) and Bromfield Street. Murray Street features buildings of historical significance including the former post office (built 1876), Shire hall (built 1879) and national brand retailers Coles Supermarket, K-Mart, all major banks and daily convenience retailers.<br><br>Bromfield Street, Colac has experienced sustained development over the past decade with national retailers and traders such as Woolworths (Supermarket, Woolworths petrol, BWS Liquor), an Aldi Supermarket, Best and Less, The Reject Shop, Bakers Delight and a bulk billing medical centre committing to Bromfield Street retail precinct. Bunnings store is also located on Bromfield Street, Colac, adjacent to the recently completed Colac Plaza, anchored by Coles supermarket.<br><br>The predominant industries in the area include numerous forms of agriculture (dairying, beef, sheep, cropping, horticulture, agro forestry and organic farming) together with timber processing, food processing and wholesale, construction and retail. The Colac Otway region is blessed with wonderful health care, recreational and retail services and excellent educational facilities including kindergartens, primary and secondary schooling. <br><br>Major government funded infrastructure works in the area include the now completed $515 million Princes Highway West duplication from Winchelsea to Colac. This project follows on from the previously completed duplication from the Geelong Ring Road to Winchelsea. The duplication to Colac has seen the dual highway stretching from the West Gate bridge right to Colac. <br><br>Colac is fortunate to have several large industries, which are a great counter point to the diverse agricultural enterprises which surround Colac, and rely on the town to service their needs. The other industries include AKD Timber, which process pine plantation timber and Bulla Dairy Foods. Both these businesses have two plants in Colac ALC / Minerva Foods are the largest processor of lamb in Australia and in recent years completed a $210 million upgrade and expansion of their Colac facility, before the company was sold for $400M in 2023 Bulla Dairy Foods is currently expanding with the construction of a new ice-cream manufacturing facility at Colac East, and when it is complete Bulla will employ more than 900 people in Colac. Colac Area Health are also one of the largest employers in the region.<br><br>The nearby Mt Gellibrand Wind Farm project has brought significant economic activity and benefit to the Colac region. The $258m project has generated significant economic activity in the region. Several other wind farm projects are in the pipeline for the region.<br><br>The Colac region population continues to grow, a conservative target of more than 20,000 for Colac alone has been set for 2050. The region has more than 7 million visitors per year and many of these travel the Princes Highway which passes through Colac. <br><br> For further information; <a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="http://www.colacotway.vic.gov.au/"><u>www.colacotway.vic.gov.au</u></a> <br>
Additional Location Information File<b>Petstock</b><br><br>Anchor tenant Petstock have operated from the busy Bromfield Street location since 2004. Over the journey, in conjunction with the property owners they have significantly updated and improved the building to suit the needs of the business. Petstock has an Australia and New Zealand network of 276 retail stores and 65 vet clinics. The Woolworths group purchased a 55 per cent stake in the business in late 2022.<br>The Colac store has a full range of retail products and offers a drive through service for the collection of bulky items, including pet and livestock feed. The store has dual access, with access from both Bromfield Street and via the Central Arcade from Murray Street.<br><br>Petstock committed to a new 10+10-year lease in 2022, locking in their tenure as blue-chip anchor tenant for the property.<br><br><b>Colac Tenpin Bowl</b><br>The Colac Bowling Alley has operated on this site for 60 years. Now known as Colac Tenpin Bowl the business commenced with a new five-year lease in 2022, with two further five year options. The bowling alley has been extensively refurbished and operates 10 bowling lanes, a café and snack bar. Colac Tenpin Bowl has a liquor license to cater for parties and functions. They run bowling leagues and competitive events.<br><br><b>Future Bakery / Trocadero Café and Laundromat</b><br>The Trocadero café has been a Colac institution for many years. Offering both sit down and takeaway meals to both locals and travelers. The coin laundromat situated adjacent to the café is leased with the café, together with the apartment above the café. The lease is a five year term, with one further five-year option.<br><br><b>Sabine Hair Alchemy</b><br>A hairdressing salon has occupied this front shop for many years. Currently there is a three-year lease term, with two further three-year terms to follow.<br><br><b>Kreative Marketing</b><br>Kris Seabert operates a thriving consultancy business, helping many local businesses with the digital and social media marketing. Kris signed a new two-year lease on this space in early 2023. The lease has two further two-year options.<br><br><b>Otway FM Radio Station</b><br>Otway FM is a not-for-profit community organisation providing a community radio station service operating 24 hours a day, seven days a week. They have occupied Shop 6 since 2003, but do not have a permanent lease.<br><br><b>Liberty Finance</b><br>Finance brokers office. This well presented office has Murray Street frontage. It is a three year lease with two further 3 year terms.<br><br><b>Tattoo Sin</b><br>This business has operated from shop 10-11 of Central Arcade since 2018. Currently in the last two-year term of lease.<br><br><b>Colac Kindness Network Inc.</b><br>The purpose and goals of CKN is to encourage, support and administer initiatives involving acts of kindness to provide for the wellbeing of local community members facing hardship, disadvantage, isolation or homelessness in the Colac region.<br>The CKN group have recently been offered a one-year lease of Shop 9 Central Arcade. The lease has two further one-year options.<br><br><b>Toshco Music</b><br>Retailing musical instruments, accessories and all things music related, together with providing music lessons. Toshco Music has operated in Colac for a number of years, and relocated to Shop 6-8 Central Arcade, with frontage to Murray Street in mid-2023. Taking a new three-year lease, with two further three-year options.<br><br><b>Second-Floor Apartment</b><br>The renovated two-bedroom, two-bathroom apartment is leased fully furnished. The well-appointed and well-presented apartment has reverse cycle heating and air-conditioning. It’s currently let on a 12-month lease.<br>
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86-88, 90-94 Murray Street and 63-69 Bromfield Street Colac – 3,526m2 – $78/m2 6-8, 90-94 Murray St, Colac 130 retail, music $19,200.00 $147.69 4/ 58 Hesse St, Colac 55 consulting room $12,600.00 $229.09 342 Murray St, Colac 100 office/ photography $14,400.00 $144.00 8 Hart St, Colac 160 consulting/office $34,000.00 $212.50 171 Murray St, Colac 90 pilates studio $14,400.00 $160.00 38 Murray St, Colac 434 chiropractor & allied health $60,000.00 $138.25 shop 3/ 186 Murray st, Colac 53 barber $9,000.00 $169.81 160 Murray st, Colac 128 office lawyers $14,400.00 $112.50 206 Murray St, Colac 105 office painting business $12,000.00 $114.29 124 Murray St, Colac 80 office GJ Garner homes $15,000.00 $187.50 127 Murray St, Colac 128 picture framer $13,090.00 $102.27
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• Net return approx. $203,258 plus GST p.a. (after 5% management fees which are non-recoverable)<br><br>• Substantial circa 3,850m2 land area, with multiple frontages and access points, in the heart of the Colac CBD. <br><br>• The property consists of several durable solid brick and concrete buildings, totalling approx 3,526m2 of lettable area. <br><br>• Ample Off-street vehicle parking<br><br>• Diversity of income via around 11 tenants, with around 30% of the income coming from national tenant Petbarn (owned by Woolworths), with a lease to 2042 including options.<br><br>• The flexible Commercial 1 Zoning, combined with prime positioning in the heart of the CBD, support excellent future development potential. <br><br>• The Colac region population continues to grow, a conservative target of more than 20,000 for Colac alone has been set for 2050. The region has more than 7 million visitors per year and many of these travel the Princes Highway which passes through Colac.<br><br>• Potential 50% stamp duty saving currently applicable to assets in regional Victoria, representing a significant upfront saving! Represents a potential $78,725 upfront saving on this property.<br>
