This article is from the Australian Property Journal archive
A COLES supermarket in Melbourne’s south-eastern suburb of Clayton has sold to a local private investor ahead of auction for $17.115 million, transacting at a record yield of 2.57%.
The 2,850 sqm supermarket on the corner of Centre Road and Cooke Street is on a 2,883 sqm site and sold with income of around $440,552 per annum net.
It was scheduled to be offered at CBRE’s first Premium Property Portfolio Auction on Thursday night, and sold after unsolicited, unconditional contracts were submitted one week prior.
CBRE’s Mark Wizel, Justin Dowers, Kevin Tong and Dylan Kilner sold the property on behalf of a deceased estate. It has been in the same family for more than 20 years.
“Although there was over 15 years of tenure to Coles, the buyer took a longer-term view on the opportunity of owning a prominent Commercial 1 Zoned allotment within metropolitan Melbourne,” Wizel said.
The previous benchmark was set by the sale of the Woolworths Middle Brighton supermarket in mid-2016, for$32 million at a 3.8% yield.
Dowers said there was increased demand for safe haven retail investments like supermarkets across Australia, and more specifically in Victoria.
“Investors are still taking a long term view on the retail sector with operators like Coles and Woolworths having established an exceptional track record of performance.
“Freestanding metropolitan supermarkets with attributes like a net lease structure, a consistent track record of trading in excess of turnover threshold and a blue chip tenant present compelling investment credentials.”
The IGA Coburg in Melbourne’s inner-north, which has a 15-year lease to Metcash, is being offered at CBRE’s portfolio auction tomorrow night at CBRE’s Melbourne head office.
CBRE’s expressions of interest campaign for Maroondah Village shopping centre in Melbourne’s north-east ends next week. The Coles-anchored single-level centre in Croydon North has 10 specialty retailers spanning a site area of 9,707 sqm, including 2,000 sqm of surplus land and 113 car parks. Industry sources have suggested a price in excess of $18 million could be achieved.
The firm is almost marketing Stockland’s Woolworths-anchored Highlands Shopping Centre in Craigieburn, which has expectations of $40 million, and the Village Bacchus Marsh shopping centre of 16,000 sqm, anchored by Coles, Aldi and Target Country, which should fetch around $70 million.
Earlier this year, Coles Group Property Development Ltd sold off the 1.4-hectare Torquay Village Shopping Centre for $35 million to Toorak investor David Feldman, at a 5.89% initial yield.
The centre has a Coles supermarket and Liquorland, as well as 15 specialties.
Australian Property Journal
