BP Bendigo (Kangaroo Flat) VIC 172 Calder Highway (High ......Fantastic Furniture, Adairs, Focus on...

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BP Bendigo (Kangaroo Flat) VIC 172 Calder Highway (High Street)

Information Memorandum

Auction 11am AEDT Wednesday 24 October 2018

River Room, Crown Casino, Melbourne

Table of Contents

Introduction 4

Investment Features 6

Location 10

Location Maps 11

Property Details 12

Lease Details 13

Financial Summary 13

Tenant Profile 14

Method of Sale 16

Interstate Bidding 16

Contact 16

Property Management 17

Disclaimer 18

Appendices

Appendix 1: Title Plan

Available Upon Request

• Lease Documentation

• Sale Documentation

• Environmental Reports

Burgess Rawson 32 Information Memorandum | 172 High Street, Bendigo (Kangaroo Flat)

Introduction

Burgess Rawson and Tweed Sutherland First National are delighted to offer the Autobarn located at 172 Calder Highway (High Street), Bendigo (Kangaroo Flat) Victoria, for sale by way of Auction to be held from 11.00am (AEDT), Wednesday 24 October 2018, in the River Room, Crown Casino, Southbank Melbourne.

Burgess Rawson

Since being established in 1975, our Sales, Leasing, Property Management, Valuation and Advisory services fulfil the complete and ongoing needs of our clients. Burgess Rawson has a network of offices throughout Australia and extensive regional partnerships with local property specialists, giving unmatched depth and reach in all commercial property market sectors.

At every stage of ownership, our clients benefit from our specialist knowledge, experience, market insights and advice. Our strong market position, plus our targeted and effective marketing campaigns through a highly qualified database, generates maximum exposure for properties.

Burgess Rawson’s iconic Portfolio Auctions are held in Melbourne and Sydney bringing together a diverse range of national commercial and investment grade properties.

Our renowned auction program, together with a large pool of qualified investors continues to generate results. With eight, two day Investment Portfolio Auction events held each year, Burgess Rawson are the leaders in the selling of quality property investments.

Based on our knowledge and experience, Burgess Rawson and Tweed Sutherland First National are confident in recommending the property as an outstanding investment opportunity.


Investment Features • Renewed 10 year lease to 2028 plus options to 2048

• Annual CPI reviews

• Tenant pays all usual outgoings as per the lease

• 100% Leased to BP Australia: one of the world’s leading oil and gas companies with 1,400 branded retail fuel sites across the country

• Blue chip Commercial 1 gateway site of with extensive frontage to major four lane arterial carrying 31,000 vehicles daily

• Kangaroo Flat: the first commercial precinct from Melbourne surrounded by Bunnings, Lansell Plaza anchored by Coles, Woolworths, Kmart, KFC and McDonald’s

• Greater Bendigo: Victoria’s third largest urban centre with a growing population of over 116,000, forecast to increase to 155,000 by 2036

Jamie Perlinger 0413 860 315 [email protected]

Scott Meighan 0413 830 709 [email protected]

Tom Harrop 0409 014 657 [email protected]

Location

172 Calder Highway (High Street) Bendigo (Kangaroo Flat) VIC

Site Area

2,023 sqm with 40 metre frontage (approx.)

Building Area

256 sqm (approx.)

Zoning

Commercial 1 Zone under the Greater Bendigo Planning Scheme

Lease Details

Term: Renewed Ten (10) year lease to 1 February 2028 Options: Four (4) further Five (5) year option to 31 January 2048 Rental: $242,952 pa (est. 2.5% review Feb 18)

Method of Sale

For sale by Auction on Wednesday 24 October 2018 at 11am (AEDT) River Room, Crown Casino, Melbourne

Boundaries are indicative only


An outstanding opportunity

to secure a high profile BP

service station with a renewed

10 year lease, located next

to McDonald’s on the main

thoroughfare into the Bendigo

CBD.”

Jamie Perlinger


Location

Bendigo is Victoria’s largest regional city and situated in the geographic heart of Victoria: This City is located approximately 150km north west of Melbourne’s CBD, at the junction of four highways (with excellent connections to interstate highways) and only a 90 minute drive from Tullamarine Airport.

Bendigo

Victoria’s largest inland city expected to grow to 150,000 people by 2036

The steadily growing population of the City currently sits at approximately 116,000 and is forecast to further grow to just under 200,000 by 2050. (www.id.com.au).

The City of Greater Bendigo is located in the centre of Victoria, covering almost 3,000 square kilometres.

Greater Bendigo is a vibrant, creative and culturally enriched major regional centre for northern Victoria and sourthern NSW and has the third largest urban area in Victoria.

It also includes productive agricultural areas and many small towns and villages such as Heathcote, Axedale, Huntly, Marong, Elmore, Goornong, Kamarooka, Lockwood, Neilborough, Sebastian, Woodvale, Raywood, Mia Mia and Redesdale, which are renowned for their strong sense of community and lifestyle.

The local population is continuing to grow and is increasingly culturally, religiously and ethnicially diverse. Council is committed to Greater Bendigo being a community that understands and respects cultural and religious differences, supports multiculturalism and actively promotes cultural inclusion.

The trade area directly served by the City is a massive 200,000 people, and includes the thriving smaller communities of Heathcote, Elmore, Goornong, Marong, Redesdale and Axedale.

The area has a prosperous history, commencing with the discovery of gold in 1851. By the 1880’s Bendigo was proclaimed the richest goldfield in the world, with tens of thousands people flocking there to seek their fortune.

Approximately $9 billion worth of gold has been discovered in Bendigo, making it the second highest producing goldfield in Australia and the seventh richest in the world.

Bendigo is now a thriving and established regional city with an overall gross economic output of over $10 billion per annum. Some of the largest employers in the Greater Bendigo region include:

• Bendigo & Adelaide Bank Head Office - $100million six storey building

• Thales Australia

• LaTrobe University

• Australian Defence Apparel

• Bendigo TAFE

Brief Statics Bendigo

Estimated Population 2018: 116,568

Forecast Population 2038: 155,596

Forecast percentage change between 2017 and 2050 33.48%

For further information, please visit: www.bendigo.vic.gov.au


Address 170 Calder Highway (High Street) Bendigo (Kangaroo Flat) VIC

Title Details Volume 05383 Folio 492 Volume 04758 Folio 515

Zoning Commercial 1 Zoning under the Greater Bendigo Planning Scheme

Property Details

LocationThis prominently positioned site is located on the Calder Highway in Kangaroo Flat. The Calder Highway is an important Victorian arterial connecting Melbourne to Bendigo, Mildura and to the New South Wales border. It is literally the gateway to Bendigo with the CBD situated a mere 5 km further to the North along this high capacity 4 lane arterial roadway which carries some 31,000 vehicles past the site daily. The adjacent shopping precinct features high profile neighbours including McDonalds next door, Aldi, Chemist Warehouse, IGA, KFC, Bendigo, ANZ and National Banks along with a multitude of other retail traders.

The massive Rocklea Homemakers Centre which features national brands such as Pillow Talk, Fantastic Furniture, Adairs, Focus on Furniture, Provincial Homeware, Early Settler, BCF, Lindcraft, Focus on Furniture and Anytime Fitness is a short 1 km drive south of the subject property.

Another huge shopping complex adjoining the Homemaker Centre is Lansell Square featuring Bunnings, Coles, K-Mart, Safeway, Rebel Sports, BWS and Petbarn amongst numerous other retailers is also located only a very short distance away and Harvey Norman is a huge magnet drawing a significant client base to the area.

All of these traders are set amidst a substantial and growing residential locale with Bendigo and its attractions being a major retail, tourist and business hub set in the midst of Central Victoria’s historic Goldfields district.

Site DescriptionRectangular in shape, the site comprises two adjoining titles, with a total site area of 2,023 sqm.

Site AreaThe total site area is approximately 2,023 sqm and has the following boundary dimensions:

Calder Highway Boundary 40.23 m

Northern Boundary 50.29 m

Southern Boundary 50.29 m

Western Boundary 40.23 m

Building DescriptionThe subject property comprises the following improvements.

• Well maintained retail convenience store incorporating a Subway restaurant (sublease BP Australia managed entirely by) located at the northeast corner of the site

• Attached canopy covering four pump islands

• Twelve marked on-site car parking spaces

• Above grounpd C8G gast tank

• Underground fuel infrastructure

• Fencing, paving & landscaping

Lease Details

Lessee: BP Australia Pty Ltd

Lease Commences: Ten (10) years from 1 February 2018

Lease Expiry: 31 January 2028

Options: Four (4) further options of Five (5) years to 31 January 2048

Rent Reviews: Annual CPI reviews with a market review at the commencement of further option period

Outgoings: The tenant is responsible for all usual outgoings as per the lease, excluding single holding Land Tax.

Rental: $241,740 pa

Please note that the above information is intended as a summary of the lease agreement supplied and has been represented as accurately as possible. We recommend prospective purchasers make their own enquiries to gain a thorough understanding of the provisions of the lease contained within in the Sale Contract.

Income

Rent (assuming CPI 2.5% February 2019) $242,952 pa

Less Non-Recoverable Outgoings

Single Holding Land Tax $2,975 pa

Estimated Net Rent $239,977 pa

Financial Summary


Tenant Profile

BP in Australia

BP has worked in Australia since 1919 and today they are involved in a range of activities such as exploring natural gas and crude oil resources and also refined and market petroleum and lubricants.

Their crude oil refineries at Kwinana in WA and Bulwar Island in Queensland are well placed to support the expanding mining industry and produce some of the cleanest fuels available in Australia.

They also make and market BP and Castrol lubricants. Castrol is one of Australia’s market leaders providing world class quality lubricants for the local market.

BP have a network of almost 1,400 service stations throughout Australia, including a number of 24 hour truck stops on the country’s major highways.

BP employs around 5,700 people in Australia.

BP Global

Major retailer with approximately 20,700 retail sites in over 72 countries worldwide

Employs some 74,000 people worldwide.

Source/further information, visit www.bp.com


Sale Process

Interstate & Local BiddingInterstate and local bidding available at Burgess Rawson offices.

InspectionsInspections can be arranged by prior appointment.

Terms of SaleDeposit of 10% payable upon exchange and the balance upon settlement. It is proposed the property will be offered as a ‘going concern’ and if the purchaser meets the provisions of the GST legislation the sale will not incur GST

Burgess Rawson & Associates First National Commercial Level 7, 140 Bourke Street 2 Mitchell Street Melbourne Bendigo VIC 3550

P

P

P

N

Power St

CrownPromenade

Que

ensb

ridge

St

Crown Towers

Escalators

Main Complex EntryAtrium

Casino

Casino

Food Court

Yarra River

Yarra Promenade

King St

RailwayFlinders St

Palladium

MelbourneExhibition

Centre

Clarendon St

Whiteman St

Whiteman

St

Kings Way

Crown Conference

Centre

River Room

Multi-level Car Park

City Rd

Crown Metropol

Haig Ln

Clarke St

Normanby Rd

Method of Sale

For sale by auction on Wednesday 24 October 2018 at 11:00am (AEDT)

River Room, Crown Casino, Melbourne, VIC

Jamie Perlinger Tom Harrop 0413 860 865 0409 014 657 [email protected] [email protected]

Scott Meighan 0413 830 709 [email protected]

Property Management

With an Australia-wide management portfolio of well in excess of $2billion, we are able to equally manage property whether it is CBD, metropolitan or regionally located.

• More than Rental Collection - care for your property and investment. Professional property management enhances and secures your tenant relationship, provides property accounting (including tax invoicing/GST/BAS) reports and maximises rental. We take the weight off your shoulders.

• Achieve $ savings - through our buying power and access to the best providers: insurance brokers, maintenance contractors etc. We have the contacts and long standing relationships to be at your disposal.

• Improve your cash flow - Apart from ensuring regular rental increases are enacted to maximum sustainable levels, a professional property manager reviews council rating values, as well as accessing the best taxation depreciation assessment to improve your after income tax bottom line. We aim to add more to your overall capital value.

• Not missing a beat - With our daily contact in the market, we hear about new developments, tenants on the move etc. Whether this information helps protect your investment or leads to further opportunities, we have our ears to the ground.

• Problem solvers - Owning property has never been more complicated, and highly regulated. We are fully conversant with the Retail Tenancies Act, Town Planning and Occupational Health and Safety Regulations. We can anticipate and prevent problems.

• Experience and involvement - Our professional property managers offer a wide range of expertise. Time in the profession, and continuous improvement and involvement in the property sector is an intellectual pursuit. We can provide a pool of such experience to individual clients in a way we believe self-managed property owners cannot.

• Value for money - free yourself up to concentrate on the returns of your investments, rather than the daily issues which can arise from your property. The small cost involved in professional management is money well spent. We have the resources to service your needs.

To discuss your particular property management’s needs, please contact either Leon Holderhead or Phil Harrison today.

Leon HolderheadAsset Manager 0413 830 304 [email protected]

Phil HarrisonAsset Manager 0413 860 303 [email protected]


Disclaimer

The information contained in the report/information memorandum has been prepared in good faith and due care by the Vendor, Burgess Rawson and Tweed Sutherland First National. Any projections contained in the report therefore, represent best estimates only and may be based on assumptions.

The information contained herein is supplied without any representation as to its truth or accuracy. All interested parties should make their own enquiries to satisfy themselves in all aspects and obtain their own independent advice in order to verify any of the information. All stated dimensions and areas are approximate.

The vendor does not represent or warrant the accuracy of any information contained in this document. Subject to any statutory limitation on its ability to do so, the vendor disclaims all liability under any cause of action, including negligence, for any loss arising from reliance on this document.

Specifically, we make the following disclosures:

• All areas, measurements, boundaries, car space numbers, rents are approximate only and subject to final confirmation;

• The indicative depreciation schedule has been provided by Napier & Blakeley and is an estimate only and cannot be used for tax purposes.

The information contained in this document is provided as a guide and an aid to further investigation by potential purchasers. Prospective purchasers should seek legal, financial and other appropriate expert advice in order the verify the accuracy of the information presented in this documentI

Intellectual Property

The information contained in the report has beenprepared in good faith and due care by Burgess Rawson. The contents of this document are proprietary to Burgess Rawson this includes: research including transactional data and reproduction of this information by any other part is not authorised. All other information contained herein is from noted sources deemed reliable, however Burgess Rawson does not represent or warrant the accuracy of any information contained in this document.

GST Disclaimer

Burgess Rawson and Tweed Sutherland First National and advises that the financial information in this report relating to income, outgoings and the like is provided without reference to the possible impact of GST, if any. Purchasers should make their own assessment of the impact of GST on the investments and the returns derived there from after obtaining expert professional advice.

Retail Leases Act 2003 – Tenant outgoings

Prospective buyers should note that the recovery of outgoings from a tenant is subject to the application of and proper compliance with the Retail Leases Act 2003 (Vic). The Act applies to leases of retail premises in Victoria. If the Act applies, certain outgoings, such as land tax and some maintenance costs, cannot be recovered from the tenant. If the Act applies, other outgoings, such as management fees, can only be recovered from the tenant if the Act has been complied with.


Burgess Rawson18 Information Memorandum | 172 High Street, Bendigo (Kangaroo Flat)


Information Memorandum | 172 High Street, Bendigo (Kangaroo Flat)

BP Bendigo (Kangaroo Flat) VIC 172 Calder Highway (High ......Fantastic Furniture, Adairs, Focus on...

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