This article is from the Australian Property Journal archive
STRATA-titled supermarkets in Melbourne’s north and inner east have sold for more than $24 million combined.
A Suga IGA has just sold for $11.3 million to a private family on a sharp 4.15% yield with a new 10-year lease to Metcash.
The 2,032 sqm supermarket was the ninth investment asset to transact through the Stonebridge national investments sales July portfolio. Kevin Tong, Rorey James and Justin Dowers handled the transaction.
“We recognise the eventual sale price and the yield to be a strong result considering the supermarket was effectively sold on a strata title,” James said.
“Given everything happening in the market, there is a real sense of flight to quality from local and Asian investors. The most sought-after investments are ASX-listed tenants with long initial lease terms, this was evident in our successful Coles Lalor Campaign two month prior to Supa IGA.”
Tong said 31% of the enquiry came from Asian buyers as the price point, tenant profile and security is in the “sweet spot” for a lot of the private Asian clients.
The sale follows the strata-titled Woolworths supermarket in Hawthorn selling for $12.85 million, on a 3.3% yield, also through Stonebridge.
Woolworths Hawthorn is a 1,827 sqm supermarket next to Glenferrie train station and Swinburne University. Woolworths has a five-year lease that brings net annual rent of just over $424,000.