Commercial opportunity comes with long-term tenants

The proposed redevelopment of the popular Dickson shopping centre should provide a strong signal to investors who want to be part of the precinct’s no doubt profitable future.

An opportunity has presented itself at 71 Woolley Street, which might be more quickly recognised by one of its anchor tenants: KFC. The other substantial tenant is the Shell petrol station.

The two biggest tenants, who provide the bulk of the annual net rent, have leases in place that will take them through to the mid-2020s. Other commercial spaces are currently taken by Coles Express, Subway, Blockbuster Video and four speciality stores.

Selling agent Andrew Smith, of Ray White Commercial, said the property’s anchor tenants presented a compelling case to investors.

“It’s a rare chance for buyers to get an opportunity to invest in a commercial site in an inner suburb of this size and income profile,” he said.

“The property will be attractive to potential buyers because of the high quality mix of tenants and their long-term leases. Some 66 per cent of the income comes from KFC and Shell alone.

“Early inquiry has come mainly from potential local buyers, with some interstate interest,” Mr Smith said.

He said the Dickson precinct was undergoing a huge rejuvenation with new mixed-use developments under construction on the old ACTAB site and the new Malabar development on Cape.

“They will be followed by the proposed Aldi/Coles mixed-use development and the 13,000-square-metre ACT government office block on Challis Street,” Mr Smith said.

The Woolley Street site also has 65 paid parking spaces.

“The site generates about $1.285 million of net rent per annum from its tenants and those paid car parking spaces,” Mr Smith said.

It has future redevelopment potential including residential use. The Dickson master plan allows development of up to six levels.

The overall redevelopment proposal for the Dickson shops that includes 140 apartments, plus a mix of retail and commercial spaces, and the two new supermarkets, was given the green light in June.

There will be parking for 450 vehicles.

No. 71 Woolley Street, Dickson, will be sold by auction on Saturday, September 15, at 11am through Ray White Commercial Canberra agent Andrew Smith. Inspection by appointment.