This article is from the Australian Property Journal archive
BUSY vendor Coles has netted almost $100 million from sale and leaseback deals in recent weeks, after offloading three regional Western Australia properties for a combined $45.12 million.
The latest deals follow the Drysdale supermarket, just outside of Geelong, selling for $23.5 million, and the Alderley supermarket in Brisbane’s inner-north for $30.2 million.
Each of the assets have been offered as part of a sale and leaseback program that gathered momentum leading up to its $20 billion demerger from Wesfarmers in November.
Coles was hoping for more than $50 million from the WA assets, which included Coles Orana in Albany and Coles Vasse, both with new 15-year net leases to Coles, and the Coles Express Vasse fuel station, with a 10-year lease.
The 4,226 sqm Coles Orana is on a 2.9-hectare Albany Highway site and includes a Liquorland store, and was offered with approval for 658 sqm of specialty retail. It sold for $22.8 million to Lotana Property at a 5.66% yield.
In Vasse, the 3,754 sqm supermarket at 18 Napoleon Promenade sold to a China-based family $19.6 million at a 5.7% yield. Strategically located at the Margaret River and Dunsborough turnoff intersection, it includes a 200 sqm Liquorland and parking for 185 vehicles. Neighbouring the supermarket is the brand new Coles Express Vasse petrol station site, which has a 142 sqm convenience store on a 2,111 sqm site and sold to a Victoria-based investor for $2.72 million, at 6.2%.
The past few weeks has also seen Coles offload the 3,775 sqm new-format Drysdale supermarket, which has a Liquorland outlet, at a 5.36% yield to Temax Nominees. The one-hectare site on Murradoc Road sold with a 15-year leaseback.
A high net-worth Victorian investor outlaid $30.2 million for the 4,410 sqm Coles Alderley trophy asset, on a 1.25-hectare site at 34 South Pine Road, reflecting a 5.29% cap rate.
Late last year, Coles put another trophy asset in Brisbane’s inner suburbs, the newly built Kedron supermarket to the market, and sold the Aurora Village shopping centre in Melbourne’s Epping for $45 million.
It also recently sold Westmead shopping centre in Sydney’s western suburbs to a private investor for $21.0 million, anchored by a full-line Coles supermarket and Liquorland.
Australian Property Journal
