This article is from the Australian Property Journal archive
YIELDS for regional IGA supermarkets in Victoria are continuing to tighten, with a St Leonards investment achieving 5.06% at auction.
The Bellarine Peninsula investment sold for $5.625 million after bidding commenced at $4 million, on a land rate of $4,374 per sqm.
Alex Ham of Gross Waddell and Tim Darcy and Simon Jarman of Darcy Jarman sold the property.
In March the Stawell IGA sold for $5.11 million on a 5.82% return as yields for the asset type head towards sub-5%.
The St Leonards deal achieved a tighter yield than those for Melbourne metropolitan IGA offerings through last year, including the Hoppers Crossing IGA at 5.3% and Wantirna South at 5.5%.
Regional IGA deals in 2016 included the Nagambie IGA selling to a Chinese investor August for $7.8 million on a 6.11% yield; the Kyabram IGA in September for $4.2 million on a 6.86% yield, and the Hamilton IGA in October for $2.95 million at 6.01%.
Australian Property Journal
