Coles Group Property Developments has sold its newly developed Coburg North Village shopping centre for circa $38 million.
Coles Group Property Developments has sold its newly developed Coburg North Village shopping centre for circa $38 million on a fully leased record low yield of 4.94 percent to a Melbourne based private investor.
According to exclusive marketing agents Savills Pat De Maria, Tom Forrest and Steven Lerche, the sale generated an unprecedented response with a record 300 enquiries and 27 offers to purchase from a range of privates (local and interstate), off-shore and institutional investors with 18 offers at a sub 6 percent yield.
“In this case the limited availability of quality retail investments and the high level of demand resulted in offers totaling an extraordinary $860 million and a genuine record sub 5 percent yield for a fully leased neighborhood centre,” Mr De Maria said.
Anchored by a flagship Coles Supermarket, on the corner of Gaffney and Sussex streets, the property is fully leased and comprises a 6,283 square metre GLA neighborhood centre on an 18,560 square metre site with four street frontages. It was sold with a new 15 year lease to Coles and Liquorland and an estimated net income of $1.87 million per annum.
Mr Forrest said the astonishing market response was a reflection of the centre’s location including its demographic profile and growth potential, the fact that it was a brand new centre, and the strong lease profile with Coles Supermarket accounting for a major slice of the total income.
“There are several fundamentals involved in making this centre so attractive to investors but the key factor was the Coles Supermarket (including Liquorland) lease. It was, without doubt, an unequivocal vote of confidence in the Coles brand,” Mr Forrest said.
Located just over nine kilometres north of Melbourne, the centre opened in August 2015 and offers a state of the art, flagship full-line market-style Coles Supermarket and Liquorland of 4,175 square metres.
The fully leased centre is further supported by 15 convenience based specialty retailers, including a medical centre and pharmacy, and provides sensor activated on-grade parking for 303 vehicles.
The centre also benefits from a large main trade area accommodating in excess of 46,100 residents which is forecast to grow to 52,050 or 12 percent by 2026.
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