This article is from the Australian Property Journal archive
SUPERMARKET giant Coles is selling its newly developed Coburg North Village shopping centre.
The 6283 sqm GLA centre is situated on a 18,560 sqm site with four street frontages and includes a new 15 year lease to Coles and Liquorland, along with 15 specialty retailers, including a medical centre and pharmacy, and provides convenient sensor activated on-grade parking for 303 vehicles. The property generates an estimated net income of approximately $1.9 million per annum.
Savills’ Pat De Maria, Tom Forrest and Steven Lerche are handling the sale and expect it will attract significant local and offshore interest.
“The property could not have been placed on the market at a better time with retail property transactions currently running at $7 billion to $8 billion a year, according to Savills’ research. This level of investment has been bolstered by a high level of offshore investors – as well as local institutional and private investors – which has intensified competition and driven yield compression.
“The limited availability to purchase quality retail investments, and the high level of investment demand has intensified competition for available assets. The increased competition has been great for those vendors who have put their properties to market,” De Maria said.
Forrest said the centre benefitted from a large main trade area accommodating in excess of 46,100 residents and was forecast to grow to 52,050 by 2026 – an increase of 12% for the period.
He added that retail investors were acutely aware of the extraordinary investment value provided by neighbourhood shopping centres where a significant proportion of the income is generated by non-discretionary based tenancies.
The property will be sold by expressions of interest closing Wednesday, July 13.
Australian Property Journal
