Coles Group has offloaded two pieces of the Boronia Mall, in Melbourne’s east.
One investor is paying a price speculated to be $35 million for the neighbouring, strata-titled assets:
- A 2942 square metre supermarket tenanted to Coles until 2031, and
- A 7182 sqm outlet rented to Kmart until 2025.
The investments return a total annual rent of $2.05 million.
On that basis, the blended yield for the deal is about 5.9 per cent.
CBRE’s Mark Wizel, Justin Dowers and Kevin Tong represented Coles Group – a business which was until a demerger last November, a Wesfarmers entity.
Kmart is still under the Wesfarmers umbrella.
The agents said Boronia Mall provided undercover and at-grade customer parking.
A refurbishment incorporating the lifts, travellators, plant and car park has also recently been completed.
The suburb is about 32 kilometres east of the Melbourne CBD.
Boronia Mall and the adjacent Boronia Central shopping centre are Major Activity Centres within the state government’s Plan Melbourne metropolitan planning strategy.
As such, the Coles and Kmart assets have longer-term airspace redevelopment potential.