This article is from the Australian Property Journal archive
A SYDNEY-based investor has swooped on a Woolworths Metro supermarket in Melbourne’s inner north, with the trophy investment selling on a sharp sub-3.3% yield.
Woolworths Metro Clifton Hill was put to the market in August with expectations of more than $5 million and sold post-auction.
It was offered options until 2056, on a net lease with fixed annual 3% increases. The former Retravision store was renovated in 2019 to the tune of $1.5 million, and site on a 712 sqm corner site with Commercial 1 zoning near the Gasworks development.
Colliers’ Tim McIntosh, Matt Stagg and Yvonne Zhou sold the property.
“Strong investment opportunities, such as Woolworths Metro Clifton Hill, are rare, particularly in strategic metropolitan locations leased to a secure tenant. We continue to experience lots of interest from investors drawn to ultra-defensive and recession-proof investments with attractive income growth,” Stagg said.
McIntosh said the sale of Woolworths Metro Clifton Hill to a Sydney-based private investor, further highlighted the growing theme of buyer mandates increasingly being more fluid across the eastern seaboard.
Among the recent freestanding supermarket sales across Melbourne and Victoria is that of the 5,274 sqm Coles site in Hampton, which Coles itself has reportedly acquired for $17.2 million, reflecting a 2.7% yield.
Also selling was the 4,132 sqm Woolworths Kerang for $16.25 million. Woolworths’ 10-year lease has options to 2057 and brings $975,000 a year in rent.
