KMART SEES OXENFORD AS HOT PROPERTY

Written on the 14 April 2015

KMART SEES OXENFORD AS HOT PROPERTY

DISCOUNT retailer Kmart Australia has identified Oxenford as hot property, prompting the company to set up its first stand-alone store on the Gold Coast in the northern suburb's commercial heart.

Kmart is developing the 6200sqm store on a 1.35ha site adjoining Bunnings warehouse on Tamborine-Oxenford Road.

Now it is searching for a buyer for its latest store, which is expected to sell around $20 million, with Kmart planning to lease the property for the next 12 years.

Peter Tyson, who along with Savills retail Sales colleague Jon Tyson will be marketing the investment by expressions of interest, says the property has only been on the market for less than a week and the inquiry rate has been strong.

"We expect the asset to be keenly sought by investors due to the blue-chip covenant and the long-term 12-year lease," Tyson says.

"Properties that are this well located with tenants of this calibre and such long-term leases are rare in the marketplace. These investments have been tightly held as they are difficult replicate in the current market."

Kmart has honed in on Oxenford despite operating another store a few kilometres south at Helensvale Town Centre. The retailer, owned by Wesfarmers (ASX:WES), is understood to be targeting an east-west catchment at Oxenford.

Kmart's decision to establish a stand-alone store is not unusual, although more commonly they are located within larger retail centres. Wesfarmers also owns Bunnings and developed its store there in 2012.

"This site effectively represents the last large-scale opportunity for a major retailer to enter the precinct," says Tyson.

"It is an underserviced catchment with the nearest retail facilities to the north in Beenleigh, about 25km away."

Tyson says the new Kmart store will benefit from large format retailers nearby such as Super Amart, Fantastic Furniture and The Good Guys.

"The surrounding Oxenford retail precinct has evolved rapidly over recent years in response to the demands of the burgeoning population growth in the northern Gold coast corridor," says Tyson

"This precinct is strategically positioned on a major traffic node and has traded strongly due to ongoing strong population growth in the surrounding communities which have a significant footprint" Mr Tyson.

The project is expected to be completed towards the end of this year and the expressions of interest campaign will close on May 6.

Tyson expects the property to generate national interest from industry funds, real estate investment trusts and private investors.


Latest News

STAFF CHURN BLAMED FOR MCGRATH EARNINGS DOWNGRADE

MCGRATH will fail to meet earnings forecasts after some of its star real estate agents defected to growing Perth firm...

MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

LAURA McBain (pictured) has resigned as a director of Bellamy's Organic (ASX: BAL) today, effective immediatel...

REDBUBBLE TO MISS IPO FORECASTS

REDBUBBLE, the online marketplace for independent artists, will miss a series of forecasts set out in its IPO in its ...

BLUESCOPE CONTINUES STRONG RUN WITH GUIDANCE UPGRADE

BLUESCOPE Steel (ASX: BSL) is trading up 7.51 per cent at $11.16 per share after upgrading its half-year guidance thi...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter