Coburg North Village sells for second time in three years

The 1.8 hectare block includes 6283 square metres of lettable retail area in several buildings.

A near-new Coles-anchored retail complex in Melbourne’s north is selling for the second time in less than three years.

Coburg North Village Shopping Centre hit the market in late January.

It is trading for $47 million.

The complex was offered by private investor Raymond Joe, who paid Coles $38m in November, 2016 – a deal which reflected a low 4.94 per cent yield.

On a 1.8 hectare site at the north east corner of Gaffney and Sussex streets, the asset includes 6283 square metres of lettable area and open-air car park.

There are 15 specialty stores.

The property returns annual rent of c$2.7m.

The address is not far from the Lincoln Mills Homemaker Centre which includes an 11,500 sqm Bunnings, a 3800sqm Harvey Norman and a 2000 sqm Officeworks.

Coburg North is about 11 kilometres from the CBD.

CBRE’s Justin Dowers, Mark Wizel and Lewis Tong marketed the retail asset as “Australia’s strongest trading Coles-anchored neighbourhood shopping centre”.

It is selling to private investor Isaac Solomon (story continues below).

In October Charter Hall paid Village Roadshow $12.5m for the Coburg Drive-In theatre at 155 Newlands Rd, Coburg North.

It is expected the landlord will replace that 8.1ha block with commercial product once a 10-year leaseback expires.

At that stage, the drive-inn will have been based there for 63 years.

Recent supermarket deals

Earlier this week, we reported an IGA-occupied supermarket in Ringwood East traded for $7.34 million.

On a Commercial 1 zoned site opposite the suburb’s train station, it longer-term high-density residential redevelopment potential.

Last year, two Woolworths-leased assets in Melbourne’s east traded for a total $33.3m.

In the largest deal, the Nossbaum family offloaded a Burwood East holding for $18.2m.

Meanwhile, lawyers Jeffrey Pinch and Jeffrey Appel with investment banker Michael Naphtali, banked $15.1m from a Scoresby asset.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco