Coburg Hill Shopping Centre sells for $21.3m
APN Property Group has sold a Woolworths anchored retail investment in Melbourne’s north for $21.3 million.
Coburg Hill Shopping Centre, built into the ground floor of a two storey complex also with apartments, is trading to a Sydney private investor with an overseas partner.
With 4419 square metres of area – 72 per cent of which is rented to the supermarket – and seven speciality stores, the asset is three per cent vacant.
Based on the annual net revenue ($1.28m), it is trading on a six per cent passing return.
The market yield would be 6.6pc.
At 153-157 Elizabeth Street, Coburg North, 11 kms from town, the six year old complex has a weighted average lease expiry of 11 years.
Woolworths’ rental agreement expires in 2034 (story continues below).
CBRE’s Victorian Retail Investments’ Justin Dowers, Kevin Tong and Lewis Tong listed the investment in February.
At the time it carried price hopes of more than $24m.
The agency last April sold the nearby Coburg North Shopping Centre to another Sydney investor, Isaac Solomon, for $47m – a price which reflected a 4.7pc yield.
Some other major Melbourne retail investments to trade in 2018 include Epping’s Aurora Village ($44.25m), Glen Iris’ Tooronga Village ($62.8m) and within Northcote Plaza ($60m).
Two months ago Keysborough South Shopping Centre exchanged for $33.1m – a 5.4pc return.
