Coles Cowes trades on 4.7pc yield
A 14 year old Coles in central Cowes has traded between private Melbourne investors.
The $23.75 million achieved for 114-122 Thompson Avenue, on the south west corner of Church, is the highest price paid for a commercial property on Phillip Island.
The yield – 4.66 per cent – is also the lowest for an asset of this type since 2021, JLL agents Tom Noonan, Stuart Taylor and MingXuan, said.
The buyer is believed to hold other regional real estate, including agriculture.
The sale comes five years since Region Group, then known as SCA Property Group, sold the Woolworths backed Cowes Shopping Centre, on 1.4 hectares across the road on Thompson Ave, for $21.5m to Melbourne’s Delios family.
Last November meanwhile, billionaire lottery operator Adrian Portelli paid $15m for The Block homes, which repurposed a resort.
Coles Cowes
Vendor and developer Morgan & Griffin amalgamated three blocks to create the 9555 square metre block which, after a rezoning to Commercial 1 in early 2011, made way for the supermarket, to which Coles had pre-committed.
The building spreads 3661 sqm.
There are also 214 car parks.
“This transaction represents the sharpest yield for a regionally located supermarket nationally in recent times,” Mr Noonan said (story continues below).
Six parties were shortlisted following an expressions of interest campaign which yielded 17 initial offers, according to the executive.
Mr Taylor added “many private investors are of the view that we are in a new, declining debt environment, and the bottom of this real estate cycle may be behind us”.
Coles is on a triple net lease meaning it picks up almost all outgoings and expenses.
It also pays percentage rent.
The incoming owner will also be able to claim a 50pc stamp duty saving.
The deal comes three years since a landmark deal when the Woolworths Balwyn collected $45.7m – a 2.99pc return.
Vinci Carbone’s Frank Vinci and Joseph Carbone brokered that transaction.
Phillip Island is about a two hour drive south east of Melbourne’s CBD.
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