This article is from the Australian Property Journal archive
THE property arm of supermarket giant Coles has divested a major mixed-use apartment and retail site in Sydney for $44 million to the development of a new supermarket.
The 6,453sqm Caringbah site, located around 27km south of the Sydney CBD, was sold with a development approval and an agreement for lease in place for a full-line 4,073sqm Coles supermarket and Liquorland, six specialty shops, as well as 120 one-, two- and three-bedroom apartments.
James Douglas and Ben Wicks from CBRE managed the sale on behalf of Coles Group Property Developments, to property group Conquest.
“The sale campaign generated national interest from leading retail and residential developers, who were attracted by the de-risked nature of the opportunity, via the Coles pre-commitment and planning approval, and the enhanced returns the apartment component will deliver,” said Douglas, senior national director of retail capital markets at CBRE.
Coles’ pre-development and design work at the site reportedly resulted in 125 investor enquiries throughout the campaign and 20 formal bids.
The supermarket giant recently offloaded a 2018-built freestanding supermarket in Melbourne’s inner-east suburb of Camberwell for $37 million, to Asian capital-backed investor Trident Capital Group.
With Coles recently reporting a 7% year-on-year increase in group sales revenue across its supermarkets over the first quarter of 2023, with 7.9% growth in gross supermarket retail sales to $8.874 billion.
“Our philosophy is based on the enrichment of life, and that our developments inspire and enhance communities. Conquest has decades of experience, delivering high-quality mixed-use residences and retail projects,” said Michael Akkawi, CEO at Conquest.
“Conquest is honoured to deliver a high-class landmark for the local community in Caringbah. The new precinct will provide much needed amenities, specialty shops, and quality residences.”
The site benefits from a high-profile location in the affluent suburb and sits just 200 metres west of the Caringbah train station.
“The Sutherland Shire is expected to continue to experience residential price growth over the medium to long term, driven by its proximity to the city, lifestyle options and amenities,” added Wicks, director of residential developments at CBRE.
The approved apartment scheme for the site will also offer expansive district and Port Hacking water views.
