Bendigo Supermarket Sells

A private investor has paid a low “Melbourne-like yield” for a 3,000 square metre Coles supermarket in the regional town of Bendigo.

The property sits on almost an acre of land on McIvor Highway, a major thoroughfare connecting central Bendigo and Heathcote. It sold for $11.6 million, reflecting a low sale yield of 6 per cent.

The supermarket is leased to Coles until 2019, which has an option to extend that lease to 2039.

“Two years ago this property would have sold on a yield of between 8 and 8.5 per cent,” said Gross Waddell director and selling agent Jonathon McCormack. “But with investors now able to see the population growth of townships like Bendigo, Shepparton and Echuca – they are more confident to invest and in doing so, are driving yields to low Melbourne-type levels.”

The Bendigo supermarket was the biggest property in a portfolio of three regional retail assets offloaded by a private investor. A supermarket in Myrtleford sold for $2.86 million on a yield of 7.8 per cent, and another in Benalla sold for $1.065 million on a yield of 6.5 per cent. Both had long leases to supermarket chain Foodworks.

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