COULD there be a commercial investment opportunity in the Geelong region that presents an easier way to make money?
The Oakley concept store at Torquay’s Surf City Plaza has been described as a bulletproof investment opportunity and it’s not
hard to see why.
The landmark store at Shop 7, 61 Geelong Rd, opposite Rip Curl’s Torquay retail headquarters, is subject to a secure, long-term lease through Oakley’s global parent company, Luxottica Group, which controls a large portfolio of luxury, fashion, sports and performance eyewear brands.
Darcy Jarman, Geelong West agent Tim Darcy said a strong lease covenant supports the earning potential of the property.
Luxottica pays more than $185,000 a year in rent, with significant growth potential.
“This is one of their concept stores and as we understand it is one of their best performing stores nationally,” Mr Darcy said.
“They’ve been there since 2001, so they’ve got long history with the complex.
“Their current lease doesn’t expire under December 2023, with a further seven-year option.”
Mr Darcy said it was a triple net rent — they pay all the out outgoings, including the land tax — while a further contributing factor to the strength of the covenant is that there is strong rental growth built into the lease with 5 per cent annual reviews.
“Now you will find it very difficult to find any covenant or lease that will provide you with annual reviews of 5 per cent throughout, which includes the option period as well,” he said.
“Those that are seeking a passive haven for their money, this is a good as you will get,” Mr Darcy said
He wouldn’t speculate on price, but said it produce an attractive yield.
“Properties of this ilk in Melbourne have been selling for a yield of 2.5 to 2.75 per cent,” he said.
“Now it’s not going to be that, it’s going to be a lot better, it’s going to be an attractive yield for investors in the region.”
The recently refitted shop has a floor area of 242sq m in a 10,817sq m land holding.
Offers close November 15 at 4pm