This article is from the Australian Property Journal archive
A RARE metropolitan Melbourne premium standalone supermarket with a secure lease to Coles has been listed for the first time in four decades.
Coles Bentleigh is located on a highly exposed 3,388sqm Commercial 1 zoned landholding, around 13km south-east of the Melbourne CBD, on one of the most significant spots along the Centre Road retail precinct.
Michael Gross, Danny Clark, Alex Ham, Glenn Ye from Gross Waddell ICR have been appointed to sell the supermarket via an international expressions of interest campaign, on behalf of a private family.
“Supermarkets are one of the most in demand assets for investors and seldomly do freestanding supermarkets become available in inner metropolitan suburbs of Melbourne, therefore, we investors to be draw to Coles Bentleigh for its long-term lease fundamentals, income profile, tenant profile and underlying land value,” said Gross.
Coles Bentleigh boasts a strong income profile with a base rent of $984,619 net per annum and benefits from a valued triple net lease structure, across the 10 + 10 year lease expiring 2038.
With 2,321sqm of GLA, Coles Bentleigh has a strong trading performance and a growing affluent high demand catchment with a median house price in excess of $1.7 million.
“Since early 2022, there have only been 4 metropolitan Melbourne freestanding supermarket sales with a blended average yield of 3.36%* across the 4 sales,” said Clark.
“This highlights the ongoing demand and fast-growing pool of investors looking for defensive, income-producing investments protected against growing land-tax bills.”
Just last week, Coles Group listed the 2021-completed Andergrove Village Shopping Centre in Queensland’s Mackay for sale.
Coles Group has just offloaded the recently constructed Huntlee Shopping Centre in the Hunter Region of NSW for $33 million to a Sydney-based private investor, and closed 2023 with the divestment of Flagstone Village neighbourhood shopping centre in south east Queensland for more than $26 million to a high-net-worth private investor.
The Centre Road retail precinct is occupied by national retailers, cafes and restaurants and fashion boutiques within proximity of the Melbourne CBD and adjoining affluent suburbs.
“Coles Bentleigh is embedded within the community for over 40 years, it is complemented by an abundance on-street parking within the title and a plethora of council owned car parking directly facing the supermarket,” added Ye.
“In addition to a wealth of amenities including the train station which is only 85 metres* away, this inner metropolitan supermarket investment will appeal to a wide range of savvy private investors and offshore investors.”
The international expressions of interest campaign for Coles Bentleigh is scheduled to close on 10 April 2024.
