Kmart Bairnsdale has hit the market following strong demand for ultra-defensive freestanding retail investments. The asset, secured by Wesfarmers until 2032, with further options to 2062, is the first brand-new Victorian freestanding retail investment to be publicly marketed in more than 12 months.
Kmart Bairnsdale is the only full-line Discount Department Store within a 66km radius, servicing far beyond its local catchment of 45,120 persons, strategically located upon entry to Bairnsdale with direct exposure to Main Street, an arterial thoroughfare transporting over 7.67 million vehicles annually.
Colliers’ James Wilson and Tim McIntosh are exclusively bringing Kmart Bairnsdale to market via an Expressions of Interest campaign, closing on Wednesday, 16th August 2023.
“It is the first brand-new freestanding retail investment to be publicly marketed in Victoria since early 2021, being Coles Woodend, highlighting the limited number of high-quality retail assets,” said Wilson.
“Competition has soared for freestanding retail assets during the first half of 2023 as 60% fewer assets have been brought to market compared to last year, which has led to very competitive bidding and strong results. Brand-new developments are also providing attractive depreciation benefits to drive tax-effective net income.”
“There have been lots of activity in regional areas during the first half of 2023, as Melbourne and Sydney-based investors are capitalising on opportunities within regional Victoria, taking advantage of the 50% regional stamp duty concession,” added Wilson.
The brand-new Kmart Bairnsdale is expected to attract interest in excess of $20 million, with the site leased by Kmart until 2032, generating a base income of $1,064,250 per annum, sitting on a 15,600m2 Mixed Use Zone site with low site coverage of 33% and 194 car parks.
McIntosh said, “Kmart Bairnsdale is prominently positioned on Main Street, an exclusive gateway into the thriving Bairnsdale township. With over 90% of the town’s population residing on the north side of Main Street, Kmart Bairnsdale is directly exposed to 22,000 vehicles passing daily.”
“The Shire’s estimated Gross Regional Output for the Financial Year 2022 was $5.33 billion, up 8% from the previous year. With Bairnsdale generating nearly half of the Shire’s total employment opportunities, it is regarded as the main commercial hub for the region.”
“Kmart Bairnsdale is the only full-line discount department store in the Main Trade Area (MTA), servicing a growing population that is projected to increase to 49,321 by 2031 driving retail expenditure up to $1.03 billion by 2031 from its current $736 million, representing an average annual growth of 4.3%,” said McIntosh.
Kmart has been a part of the local Bairnsdale community for a long time, having traded for 15 years, from 2005 to 2020. It was then decided to close the old department store and create a brand-new asset, focusing on consumer experience.
Kmart’s General Manager of Property, Ben Smith, said, “We are so excited to have opened a new large format Kmart store into the Bairnsdale community. This new store is bigger and brighter than ever, featuring a refreshed layout and design which places our customer’s experience and seamless shopping at the forefront.
“With the opening of the new store, we saw the recruitment of 110 new team members from the local community, with each of the existing team members from our previous Bairnsdale K hub also being transferred over to the new location to continue their roles. Both team members and customers have been buzzing with excitement since the store has opened, and the Kmart team are proud to be able to continue servicing the Bairnsdale community with everyday products at the lowest prices.”
