Woolworths sells Bayview Central shopping complex in Curlewis

Another Victorian supermarket-based shopping centre has sold, this time in Curlewis, about 17 kilometres east of Geelong.

Bayview Central at 90 Centennial Boulevard was offered in March. It is understood to be selling for about $17 million.

Offered by Woolworths, the asset returns annual rent of $1.15 million.

A Woolworths supermarket is the anchor tenant – it has 12 years left to run on a 15 year lease.

The 4435 square metre complex is also rented to seven specialty stores including the region’s only 24-hour chemist. It also contains parking for 185 cars.

The site (outlined) relative to new housing estates in Curlewis.

Built four years ago, Bayview Central still offers depreciation benefits.

CBRE agents promoted the asset’s location, within the Jetty Road Urban Growth Area, which is expected to see population growth of 20,000 in the longer term.

They said Bayview Central is the only supermarket within a growing main trade area which is expected to reach 10,800 residents by 2031 – and that the asset has “no foreseeable competition threats”.

Brokers Justin Dowers, Mark Wizel, Kevin Tong and Ashley McIntyre represented Woolworths also said the tenants are paying low average gross rents – equating to $428 per square metre, per annum.

The centre has a 10-year weighted-average-lease-expiry.

The Curlewis deal continues a string of investment-grade supermarket-based neighbourhood shopping centre sales.

In the Geelong region, Woolworths recently offloaded its Lara complex, while rival Coles sold a supermarket and Liquorland in Drysdale, for $23.85 million.

The Bellarine Village Shopping Centre also sold. In Geelong’s inner-east, this investment traded to a Melbourne-buyer for $36.5 million.

At the start of last year Coles sold the Torquay Village Shopping Centre to a Melbourne investor for $35 million.

Last year, Charter Hall Retail REIT paid Vicinity Centres $117 million for the Leopold Gateway Shopping Centre, one suburb closer to Geelong than Curlewis.

Last month we reported the Coles North Village shopping centre in Melbourne’s Coburg North had found a buyer. It was being offloaded three years after the vendor bought it for $38 million.

In Epping, the Coles Aurora Village traded for $44 million five months ago.

Artist’s impression of the Mernda Town Centre.

Four months ago Woolworths sold the future Mernda Town Centre in Melbourne’s north-east to developer Land Capital for a price speculated to be just over $50 million.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.