This article is from the Australian Property Journal archive
A COLES supermarket in Victor Harbour, South Australia has been offered for the first time in more than five years, with strong investor interest anticipated.
The property, located at 5 Adelaide Road in McCracken on the Fleurieu Peninsula, is comprised of a full-line Coles supermarket, that opened in March 2019, a Liqourland, a Reject Shop and a F45 gym.
Ben Parkinson and Jacob Swan from JLL have been exclusively appointed to sell the 4,676sqm site, via an expressions of interest campaign.
“The most recent sale in South Australia of a stand-alone supermarket was Drakes at Salisbury in 2020, which reflected a 5.1% yield,” said Swan, joint head of retail investments at JLL.
A Bunnings store, sitting adjacent to the site, was sold in 2019 to a private investor from Melbourne, also on a 5.1% yield.
“By comparison, recent sales of centres interstate have demonstrated yields consistently below 5%. These include Woolworths Bulli in NSW and Greenvale Lakes and Bellarine Village in Victoria,” added Swan.
The centre’s location at the intersection of Adelaide, Pt Elliot and Hindmarsh Roads, will no doubt add to investor appeal, with its placement making it the most convenient supermarket shopping experience for customers from Victor Harbor, Port Elliot, Middleton and Goolwa.
“Victor Harbor, as a tourist destination, has a significant customer base of visitors and permanent residents. Coles Victor Harbor is in a perfect position to benefit from the expected continued growth in food and liquor spending,” said Parkinson, managing director of JLL, South Australia.
In Victoria, DeGroup recently acquired Coles Woodend for $33.3 million on a 4.31% yield, while a Coles anchored asset on the Murray River sold for $20,075,000.
Across the retail sector, neighbourhood centres with supermarkets as anchor tenants are still the strongest performing and most resilient asset.
“Coles and Liquorland have new 10-year leases. The Reject Shop and F45 have five-year leases with an annual increase of 3.5% and 3% respectively; which will clearly resonate with investors who can take advantage of this low interest rate climate.
The expressions of interest campaign for 5 Adelaide Road, McCracken is scheduled to close at 26 August, 2021.
