Coles sells Camberwell supermarket with a leaseback
Coles has sold the five year old Middle Camberwell outlet with a leaseback.
The two storey complex with a full-line 3957 square metre supermarket and two specialty stores over a three level basement with 209 car parks is collecting $37 million, reflecting a 4.4 per cent yield.
The buyer is Canterbury based, Asian capital backed Trident Capital Group.
“Trident’s philosophy on property investing is centered on acquiring properties at the right place and at the right time,” director Chin He said.
“Our company’s comprehensive research and due diligence revealed that Coles Middle Camberwell is an excellent long-term investment opportunity,” he added.
“We are confident that this asset will provide protection from short-term market downturns while delivering significant capital appreciation in the medium to long term,” according to the executive.
Stonebridge’s Justin Dowers, Kevin Tong and Philip Gartland were the agents.
The news comes three months since the same seller, Coles Group Property Developments, paid c$80m for the Balaclava supermarket it has rented for decades, and neighbouring shops, giving it a flexible site with development upside.
Also this year, the supermarket has divested two year old assets with leasebacks: Schofields Village in Sydney’s outer north west for $53m reflecting a 5.54pc yield, and an outlet at Toowoomba’s Glenvale for $27.4m – a 5.2pc return.
It also recently offloaded the Gold Coast’s Ormeau Village for $37m.
That asset was completed in 2019.
That result demonstrated a 5.3pc yield (story continues below).
Coles Middle Camberwell
Covering 4425 sqm at 725-757 Riversdale Road, on the north east corner of Quantock Street, the retail asset replaced a series of shops and a 7-Eleven.
Zoned Commercial 1, Coles initially intended a mixed use project with apartments and townhouses.
However following 1300 objections, it removed the residential component.
The property was listed for sale last August with an initial 10 year leaseback.
Trident formalised its offer in the first fortnight of December though it hasn’t settled.
“Metropolitan freestanding supermarkets continue to be highly sought after given the rarity of these being offered to the market, especially in prime suburbs such as Camberwell,” Mr Dowers said.
“Whilst the investment characteristics are very strong…the [Riversdale Rd] property fundamentals are even better, given the high underlying land value and significant replacement cost of the asset,” he added.
The deal comes 10 months since Woolworths spent $12.85m, reflecting a 3.3pc return, for a supermarket it occupied in Gleferrie Rd, Hawthorn.
In 2021 meanwhile, the Liuzzi family outlaid $45.7m – a 2.99pc yield – for a Woolworths backed asset in Balwyn while Lido Cinemas owner Eddie Tamir acquired a Coles Local in Hawthorn for $24.5m demonstrating a 1.9pc yield – a record low for an Australian asset of this type.
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