THE true value of Wonthaggi commercial real estate will be tested on Wednesday, November 1 when three litmus-test properties go under the hammer.
Among them will be the freehold (property only not the business) for one of the town’s best-known businesses, Tyrepower, located at 78-80 Watt Street, on the corner of Durham and Richmond lanes.
This iconic premises, used in the statewide advertising campaign for Tyrepower, is expected to top the $1 million mark, according to Raoul Holderhead, the representative for selling agents Burgess Rawson.
Also going under the hammer are two shops in Graham Street tenanted by the Noodle Canteen and Gusto Gelateria and Pastry.
“It’s purely coincidental that both of these sites have come on to the market at the same time.
“The owner of the Tyrepower property is a retired bloke who has just returned from holidays and decided he wants tidy up a few things. The shops have been on the market already but will now go to auction, as two shops on one title.”
Mr Holderhead said both properties were securely let and provided good rental income.
“The Tyrepower premises has just had the lease renewed for 10 years to 2025 with a five year option to extend to 2030,” he said.
Rent is $91,204.38 plus 3% annual increases.
The two shops in Graham Street have a combined rental return of $64,523pa.
“We all know how strong Wonthaggi is as a town and a retail centre.
“The arrival of Coles and Target had an initial impact but they also improved the town’s reputation as the regional shopping centre.
“It’s as solid as it gets.
Mr Holderhead said he expected the tyre premises to attract bids around the $1.1 million mark while the two shops, to be sold as one, would go for between $875,000 and $900,000.
The auction will be held in the River Room at Crown Casino on Wednesday, November 1 at 11am.
Contact Raoul Holderhead at Burgess Rawson 0413 860 304 for further details.
Prime commercial real estate goes to auction