Red Centre Retail: Alice Springs Kmart Comes to Market

Alice Spings Kmart is for sale for the first time in 16 years with the impending closure of a nearby Target outlet likely to make the property more attractive.

Located at 56 Bath Street and 73 Railway Terrace, the freehold property is at the heart of The Alice’s retail corridor beside Coles, Woolworths, McDonald’s, KFC and Liquorland.

Marketed by CBRE, the site has 259m of triple street frontage across Bath Street, Railway Terrace and Stott Terrace.

Kmart Australia Limited, a subsidiary of ASX-listed Wesfarmers, has a lease on the site to September 2032 with options extending to 2062.

CBRE’s Flynn McFall said a property such as the Kmart site rarely changed hands.

“The combination of an irreplaceable freehold landholding, an institutional grade Wesfarmers covenant and a true retail monopoly position in Central Australia makes this a significant regional investment opportunity,” he said.

Kmart is responsible for operating expenses including council rates, water and sewerage.

A five-year Mycar Tyre and Auto lease to 2030 rounds out the tenancy mix.

McFall said the property generated an annual net income of more than $1.85-million plus GST.

He said the asset had not changed hands for 16 years and the anticipated closure of a nearby Target outlet was likely to redirect spending to the Kmart.

The expressions-of-interest campaign for the asset are due to close at 4pm AEST on May 6.