Bargain buy: Dan Murphy's Coffs

BUDGET BUY: The building housing Dan Murphy's Coffs Harbour will go under the hammer in Sydney later this month - starting price $7.5 million.

Related links

• Fed up with Murphy's motorists
• Safety fears for motel patrons
• Boutique selection hits Coffs
• Dan Murphy's opening challenged
• Dan Murphy to tap into Coffs custom
• Dan's may not be welcome in Coffs

SOME people invest in a wine cellar, while others sink a fortune into a discount liquor store nest egg. 

That will be the case when the newly-built Dan Murphy's stores in Coffs Harbour and Port Macquarie are offered at auction in Sydney later this month.

The properties housing the popular discount liquor stores will go under the hammer, with a starting price of $7.5 million each.

The investments are attracting national interest, according to selling agents Burgess Rawson, which is advertising the properties through both its Sydney and Melbourne offices.  

"Both properties represent once in a lifetime opportunities and due to the standing of the tenant, long leases and prime coastal locations are trophy quality that would be a prestige addition to any investment portfolio," Darren Beehag of Burgess Rawson, Sydney said.  

Both properties boast 15 year leases plus options extending to 2067, backed by the security of Woolworths Ltd.

Woolworths wholly own Dan Murphy's - Australia's leading liquor retail chain with over 140 outlets nationally.

"It is rare for two investments of this calibre to be offered to the open market place," Shaun Venables of Burgess Rawson, Melbourne said.

"Not only are they excellent commercial sites in their own right, but the fact they are offered with the long term security of one of Australia's most successful retailers will ensure their popularity as wonderful secure investments." 

The Coffs Harbour store fronting the Pacific Highway/Grafton St affords high street exposure with the bonus of a double frontage to Elbow Street at the rear.

It sits on a large 2798sqm central city site with customer entry and exit points strategically positioned at the front and rear of the site.

The net income is about $574,749pa.

Port Macquarie is also positioned on a large 3153sqm site in the centre of the CBD, boasting a wide corner frontage with 55 onsite car spaces.

The net income is about $563,951pa.

Burgess Rawson Director Graeme Watson says that, depending on the individual income status of the eventual purchaser, both properties will offer tax depreciation benefits as both stores were only built last year.

The auction is scheduled to take place on Tuesday, February 28, at the Auctionworks rooms at 50 Margaret St, Sydney at 10.30am with telephone bidding from Burgess Rawson Melbourne and Brisbane.