This article is from the Australian Property Journal archive
COLES Group has sold off the Westmead shopping centre in Sydney’s western suburbs to a private investor, for $21.0 million after the asset spent a year on the market.
The stratum-titled neighbourhood centre of 4,616 sqm was constructed in 2012 and in anchored by a full-line Coles supermarket and Liquorland, and has six service and non-discretionary food retailers.
It traded at a 6.49% passing yield with a 13.4-year weighted average lease expiry by area, and a new 15-year lease to Coles.
Stonebridge agents Philip Gartland and William Blanch negotiated the off-market deal. Coles Group Property Developments put the property up for sale alongside the Bowral Coles supermarket at the start of August last year through CBRE, with hopes of fetching a combined $60 million.
“With close to 80% of the gross rent coming from Coles and the remainder of the tenants being predominantly non-discretionary, the market received this property extremely well, with the off-market process taking only a few weeks to complete,” Gartland said.
More than $3 billion has been dedicated to the expansion of Westmead’s health precinct, and plans are in motion for the Westmead Metro Station and Sydney West Light Rail.
“Being within one of Australia’s largest health and service precincts – currently accommodating over 18,000 workers and projected to grow by an additional 11,000 by 2036 – Coles Westmead will continue to benefit from the rapid growth in the catchment,” Blanch said.
Coles offloaded the 1.4-hectare Torquay Village Shopping Centre in Victoria earlier this year for $35 million at an initial yield of 5.89%, and the Coles Riverton property in Perth’s Parkwood for $31.95 million at 5.3%.
Last year, it sold its Pacific Pines supermarket in the Gold Coast’s northern suburbs for $30.025 million at a 4.63% yield.
Australian Property Journal
