Woolworths supermarket fetches $12.85m
Woolworths is speculated to be buying its tenancy at Hawthorn’s ex-Glenferrie Market.
The $12.85 million price reflects a 3.3 per cent net passing yield.
On a 3640 square metre Commercial 1 zoned parent site, it abuts a council car park and the Glenferrie Road retail strip, near the Glenferrie station.
Also classified within the Glenferrie Activity Centre and with 69 rooftop car parks, the property is near residential and student accommodation complexes rising between nine and 12 storeys.
Woolworths’ lease for the 1827 sqm tenancy would have expired in five years.
The deal comes four weeks since we reported the supermarket outlaid over $37m for a collection of Oakleigh sites including a Garry & Warren Smith dealerships, possibly with plans for a mixed use project anchored by a supermarket it will occupy.
Woolworths has also recently sold assets, often with a part-leaseback, including at Roxburgh Park (Greenvale Lakes) and, in New South Wales, in Wollongong.
Investors still backing supermarkets
Stonebridge Property Group’s Justin Dowers, Kevin Tong and Julian White marketed the Woolworths Hawthorn – unit 14/674-680 Glenferrie Rd – for a syndicate including Jimmy Goh.
The opportunity to buy other strata assets within the complex were also offered.
“Large landholdings in such prime inner-city locations close to retail and public transport amenity are very rare,” Mr Dowers said when the property was listed (story continues below).
“This property allows a buyer to secure a major piece of the best future development sites in metropolitan Melbourne,” he added.
The deal comes 10 months since cinema Eddie Tamir paid $24.5m for a Coles backed asset – a 1.9pc yield – abutting several properties he owns, across the road.
Last November, the Woolworths Balwyn sold for $45.7m – a 2.99pc return.
Also last year, a Blackburn asset leased to that supermarket traded off-market to Westrent Properties’ Emmanuel Zahra.
At $29.3m, that price reflected a 2.47pc yield.
In April an Eltham supermarket also leased to Woolworths exchanged for $35m – a 3.3pc return.
Also four moths ago a Coles backed outlet at Lalor, north of town, sold to a Vietnam backed syndicate.
That price, $13.77m, reflected a 2.99pc yield.
Subscribe to our newsletter at the bottom of this page.
