Balwyn supermarket trades at sub three per cent yield
The Liuzzi family has paid $45.7 million – some 20 per cent over initial expectation – for a major supermarket investment in Melbourne’s east.
The price for Woolworths Balwyn at 383 Whitehorse Road, reflecting a 2.99pc net passing yield, is understood to be the highest outlaid for a standalone asset of its type in the country.
Twenty suitors were registered ahead of the auction today – with five contesting, pushing the bidding from $30m to $40m in two minutes.
Vinci Carbone director Frank Vinci, who marketed the investment with Joseph Carbone, said supermarkets are the country’s most hotly contested assets.
“Based on the level of enquiry, over 260 through the campaign, there’s over $9 billion of unmet capital chasing supermarkets – and that’s just at this price point,” he added.
“This particular property ticked many boxes including a long lease to Woolworths, significant land and a blue chip address,” according to the executive.
“The vendors held it for 28 years, which I think is an indication of its intergenerational attributes” (story continues below).
The purchaser’s Liuzzi Property Group portfolio spreads across industrial, office and hotels – in Victoria, New South Wales and Queensland.
It holds significant retail product including bulky goods complexes and shopping centres.
Two of its assets – at Abbotsford’s Hive313, and Griffith (NSW) – are anchored to or fully occupied by Woolworths.
The group also operates a charitable foundation funding medical research into neuromuscular diseases – the Fred Liuzzi Foundation.
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