Dan Murphy’s Batemans Bay is a strong performer. Photo: Savills.
Endeavour Group has sold its Dan Murphy’s liquor barn in Batemans Bay for $9.4 million but will continue to operate the store through a leaseback arrangement.
Endeavour could potentially run the Dan Murphy’s brand on the Orient Street site until 2075 through eight five-year options on top of the 10-year whole-of-land lease.
The freestanding 1354 square metre store sits on a 3855sqm site conveniently positioned with dual street access.
It includes a 63-space car park with two electric vehicle charging stations.
Savills’ Steven Lerche negotiated the off-market deal.
Mr Lerche said the buyer was a private Melbourne investor who would enjoy strong rental growth, given the site’s position and area’s projected growth.
READ ALSO: Kingston Arts Precinct project takes step forward with subdivision DA
He said Woolworths developed the store and car park five years ago when Endeavour was a part of the supermarket chain.
When Endeavour split from Woolworths in 2021, it took on the ownership.
“They took it to market for sale probably about a year-and-a-half ago and it didn’t sell,” Mr Lerche said.
“Then I found a purchaser from Melbourne and did the deal back in June.”
The Dan Murphy’s property is conveniently positioned.
Mr Lerche said Woolworths and Endeavour were not usually property holders and sold sites they may develop and leased them back.
“Woolworths and Endeavour try to find the perfect position for a property, buy the sites and then develop them themselves,” he said.
“Their main game is to sell alcohol or food and veggies. That’s probably the reason why they will always offload.
“If they have a developer that can buy the land and develop for them, they’re quite happy to do that as well. But over recent times with increases in development costs, they need to be the master of their own destiny and buy sites where they can and build and then sell on to investors.”
Mr Lerche said Endeavour achieved the price it wanted for the property.
“They didn’t really budge off that number, and that worked out at about 5.34 per cent initial yield,” he said.
Dan Murphy’s Batemans Bay is the only liquor barn within a 145km radius and enjoys a dominant position in the centre of Batemans Bay.
The town is the gateway to the Eurobodalla Shite Council and a commercial hub set to reach more than 50,000 residents by 2036.
