This article is from the Australian Property Journal archive
A STRONG-performing freestanding Woolworths Metro supermarket in Melbourne’s inner suburb of Clifton Hill is going to auction after a $1.5 million renovation.
Woolworths Metro Clifton Hill is 100% leased to ASX top 10 covenant Woolworths Group, with options until 2056, on a net lease with fixed annual 3% increases.
The property was renovated in 2019 and is on a rare triple-fronted, commercial 1-zoned site of 712 sqm, providing flexibility for development upside with a height limit of 14 metres. Its corner position with frontages towards Queens Parade and Gold Street is exposed to over 11.68 million vehicles annually.
“Demand remains incredibly strong for prime freestanding retail investments, particularly those in strategic metropolitan locations that are trading exceptionally well,” said Tim McIntosh of Colliers, who is selling the asset with colleagues Matt Stagg and Yvonne Zhou.
“In current market conditions, investors are particularly attracted to the ultra-defensive and recession-proof characteristics coupled with attractive income growth that supermarkets provide.
“The opportunity to acquire a trophy supermarket asset secured by Woolworths is exceptionally rare in a prime inner-city location.
He said the supermarket sits within a catchment experiencing significant growth and will benefit from surrounding developments, including the Fitzroy Gasworks, which has an estimated value of $900 million.
The on-site public auction takes place on Friday, 15th September at 11am.
