This article is from the Australian Property Journal archive
A TROPHY freestanding Aldi supermarket in the NSW Southern Highlands has sold for $12.35 million, reflecting a 5.09% yield in the latest retail market movement.
The property, located at 6 Robertson Road in Moss Vale, is underpinned by a 15-year lease through to 2034 to the German supermarket chain. It delivers a net income of $628,252 per annum plus GST and the 2019-built asset provides depreciation benefits.
The site spans 6,093 sqm of land with mixed use zoning and has 99 metres of dual frontage to the Illawarra Highway and Moss Vale Road, with exposure to over 15,375 vehicles daily.
Stonebridge’s Michael Collins, Kevin Tong and Alex James-Elliott brokered the sale, and said the deal is evidence of ongoing demand for premium freestanding retail investments. The marketing campaign recorded over 190 enquiries and 14 offers from a range of domestic and offshore investors.
“High net worth private groups continue to follow ‘household name’ brands and secure tenant covenants, irrespective of location and are happy to ‘play’ in strong regional economies, hubs and tourist hot spots,” Collins said.
Tong said that in the face of well-publicised economic headwinds, the circa 5% yield achieved is testament to the resilience of premium commercial property assets, driven by the scarcity of blue-chip offerings available for sale and represents an effective hedge against inflation.
Retail asset sales tumbled 51% in the September quarter relative to a year earlier, according to MSCI Real Assets, with total activity for the year to date down at a similar rate of change. Meanwhile, the latest numbers from The Data App show the number of transactions per month in the three months to September was 6.7, down from 7.3 a year earlier and below the 12-month average of 7.2.
The Bai Fu Xin family has just lobbed Woolworths-anchored Geelong West neighbourhood shopping centre Pakington Strand to the market, while investment firm Mintus is hoping for around $15 million from the sale of a Penrith shopping centre anchored by IGA and a childcare centre.
Stonebridge said it has transacted over $130 million of freestanding investment assets leased to blue chip during the last six weeks tenants, achieving yields as low as 2.64%.
