Warrnambool's Coles CBD site expected to sell for record price

Colliers' director for retail middle markets Victoria Tim McIntosh said the Coles site in Lava Street was on the market.

He said it was expected to sell for about $13 million, which he believed would likely be a record for a freestanding building in Warrnambool's CBD.

"I'd be surprised if it wasn't a record," Mr McIntosh said.

The property has a 20-year lease commitment with Coles and options until 2048.

Mr McIntosh said the supermarket would appeal to offshore, local and interstate investors due to its location in one of Victoria's biggest regional cities and major tourist towns along the Great Ocean Road.

"Regional retail investment sales activity across Victoria has been scarce in supply yet highly sought after in our top 10 regional cities during the first half of 2023," Mr McIntosh said.

"Investors have seen the attraction in Victoria's 50 per cent stamp duty concession and continued population growth as key drivers to align with tenants' growing trading performance."

The building, which generates rent of more than $730,000 a year, sits on 4048 square metres.

It was last sold in 2016 - the second time it hit the market since since it underwent a redevelopment in 2008.

Colliers executive James Lawson said the city had seen significant government-funded investment, most notably the Warrnambool rail line upgrade between Warrnambool and Geelong and the redevelopment of the Warrnambool Base Hospital, set for completion in 2026.

"As the population in the Warrnambool area is expected to grow from 98,520 in 2022 to 105,630 by 2041, reflecting this increase is also the retail expenditure in the region, which is projected to increase to $2.41 billion from its current $1.44 billion over the same period of time," Mr Lawson said.

The property is being sold via expressions of interest, which close on Wednesday, November 22 at 2pm.

The Lava Street site sold was snapped up for $12.4 million in 2010.

The sale comes after another major retail operation in the city - Gateway Plaza - was sold earlier this year.

The complex had been expected to sell for about $70 million.

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