Coles offloads west Toowoomba mall
Coles Group Property Developments has offloaded a two year old supermarket with a long leaseback in the south west Toowoomba suburb of Glenvale.
The $27.4 million deal with a Melbourne private investor reflects a 5.2 per cent yield, considered tight given the rising interest rate backdrop.
The lease agreement allows for turnover rent based on online sales, which is unusual.
The incoming owner can also claim depreciation benefits for tax.
Colliers’ James Wilson, Stewart Gilchrest and Dan Dwan were the agents.
Glenvale is seven kilometres from the city centre.
The deal comes three years since CGPD offloaded a Yarrabilba investment with a leaseback for $19.05m.
Coles Glenvale
On 1.56 hectares at 114-128 Glenvale Road, on the south west corner of Greenwattle, the retail investment contains 3756 square metres – with one specialty store.
Coles is on a leaseback expiring in just over nine years however, with options, can stay until 2073.
There are also 187 car parks (story continues below).
“Investors continue to target high performing supermarket and neighbourhood shopping centre investments given the supermarket lease structure affords investors a natural inflationary hedge due to the potential for supermarket turnover rental,” Mr Wilson said.
The Glenvale complex was Queensland’s first sale and leaseback supermarket offering since 2021, he added.
Toowoomba booming
Toowoomba is the country’s second biggest inland city, Mr Dwan said, with a population of about 134,000.
This is expected to grow by about 55,000 by 2051, he added.
“Toowoomba plays a significant role as a major economic and services provision hub for the Darling Downs,” Mr Dwan said.
“Currently experiencing an influx of major infrastructure developments totalling more than $14 billion and ideally positioned 90 minutes from Brisbane, Toowoomba is expected to enjoy continued growth and enhanced competitive advantage in both commercial and residential markets,” he added.
“Investment within the key region is key and has improved Toowoomba’s links to Brisbane and the global market,” according to the executive.
“Highlights of this include The Wellcamp Airport, InterLinkSQ, Toowoomba Bypass and Inland Rail”.
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