APN Property Group has sold a Woolworths anchored retail investment in Melbourne’s north for $21.3 million.
Coburg Hill Shopping Centre, built into the ground floor of a two storey complex also with apartments, is trading to a Sydney private investor with an overseas partner.
With 4419 square metres of area – 72 per cent of which is rented to the supermarket – and seven speciality stores, the asset is three per cent vacant.
Based on the annual net revenue ($1.28m), it is trading on a six per cent passing return.
The market yield would be 6.6pc.
At 153-157 Elizabeth Street, Coburg North, 11 kms from town, the six year old complex has a weighted average lease expiry of 11 years.
Woolworths’ rental agreement expires in 2034 (story continues below).
At the time it carried price hopes of more than $24m.
The agency last April sold the nearby Coburg North Shopping Centre to another Sydney investor, Isaac Solomon, for $47m – a price which reflected a 4.7pc yield.
Two months ago Keysborough South Shopping Centre exchanged for $33.1m – a 5.4pc return.