Woolworths sells Keysborough South Shopping Centre for $33.13 million
Woolworths has sold a near-new neighbourhood shopping centre in Melbourne’s south east Keysborough to a local investor for $33.13 million.
On a 1.8 hectare site at 217 Chapel Road, at the north east corner of Hutton Road, Keysborough South Shopping Centre contains 5437 sqm of lettable area and 277 car parks.
The vendor offered the investment with a leaseback for its 4201 sqm supermarket space.
With eight specialty retailers, the asset returns annual net rent of $1.79 million.
On this basis it is trading on a 5.4 per cent passing yield.
CBRE’s Mark Wizel, Justin Dowers and Kevin Tong represented Woolworths.
“The sale reflected the very strong demand for supermarket based properties as evidenced by 11 offers recorded initially, including to locally-based Chinese investors,” Mr Dowers said.
“This is the quintessential defensive commercial property asset underpinned by a strong non-discretionary spend tenancy profile of 91 per cent including a 77 per cent GLA [gross lettable area] weighting to Woolworths.
“These are sought after assets at any time in the cycle, much more so in the extraordinary circumstance in which we currently find ourselves”.
Keysborough is about 27 kilometres from the CBD.
Also this week, Woolworths collected $26.15 million selling a Wadalba supermarket on the New South Wales Central Coast.
Keysborough just the latest retail asset Woolworths has sold with a leaseback
Last July Woolworths banked $27.5 million – some $7.5 million less than expected – from the sale of Banksia Grove Shopping Centre in Perth’s north, to a Singaporean investor.
In May the supermarket giant sold Bayview Centre Shopping Centre in Curlewis, near Geelong, for $1.7 million – a deal which would reflect a 6.8 per cent yield.
At the end of 2018, it reaped $45.7 million selling two New South Wales investments – in Lisarow, near Gosford, and Nelsons Bay.
It also offloaded Perth’s Woolworths Aveley, for $27 million.
