This article is from the Australian Property Journal archive
THREE Melbourne suburban supermarket have changed hands for around $15 million in recent weeks, as investors seek out the security of brick and mortar assets.
The supermarkets include the strata titled ALDI supermarket in Gladstone Park Shopping Centre, which sold on a 6% yield and two Gum Tree Good Foods.
Fitzroys’ Chris Kombi and Erin Niyaz sold the ALDI, while Chris James and Tom Fisher managed the Gum Tree sales.
The ALDI occupies a 1,604sqm site, strategically positioned opposite a Woolworths supermarket and BWS and surrounded by over 100 national and local traders, on a 10-year lease plus options.
“This was a rare opportunity given its price point, as well as offering a strong return and future rental growth prospects, and secure lease to one of the world’s largest and most profitable supermarket chains,” said Niyaz.
The independent Gum Tree has seven-year leases at both supermarkets, with 87-89 Dundas Place, Albert Park selling for $4.9 million, on a high building rate of $14,000 per sqm and 22 New Street, Brighton on a 5.2% net yield, in an off-market deal.
“Investors are seeking surety and so are turning to defensive bricks-and-mortar assets secured with leases to essential services tenants, which have proven their resilience through the turbulence of the past few years. Supermarket assets have retained their status as ‘recession-proof’ and are among the most sought-after in the market,” said Kombi.
“Supermarkets have been tightly held in recent years, with only a small number changing hands annually. They’ve continued to trade on healthy yields on the rare occasion they’ve come up for sale.”
In March, a Bentleigh premium standalone supermarket with a secure lease to Coles was been listed for the first time in four decades.
While Woolworths recently spent $51 million on small suburban mall, Niddrie Central, in Melbourne’s north.
