Coles Group sells near-new Yarrabilba store for $19.05 million

Coles Group has sold a two-year old supermarket in a growth corridor midway between Brisbane and the Gold Coast.

The 3532 square metre complex with 214 car parks is on a 1.7 hectare site (pictured, top) at the entrance of the Yarrabilba master-planned community.

The supermarket giant offered 2-24 Waldron Street with a leaseback – initially for 15 years, but with options to renew until 2074.

Coles’ annual rent is presently $1.04 million.

The investment is selling for $19.05 million.

On those numbers, the deal is being struck on a 5.5 passing yield

JLL’s Sam Hatcher and Jacob Swan marketed 2-24 Waldon Street via an expressions of interest campaign which closed on March 21, 2019.

The brokers said the centre’s Main Trade Area was set to increase from 21,600 to 44,220 by 2031 – “a very strong projected annual growth rate of 5.7 per cent per annum”.

Mr Hatcher and Mr Swan said retail spending is forecast to grow within the trade area by 8.9 per cent annually, to $839.9 million, in 12 years time.

The Yarrabilba asset is next door to a McDonalds restaurant.

The retail asset is next door to a McDonalds restaurant and childcare centre.

Last December, we reported that Coles Group banked $44 million selling the modern Aurora Village Shopping Centre, in Melbourne’s Epping.

Elsewhere in Melbourne it sold a near-new complex in Coburg North for $38 million in 2016. Like Aurora Village, Coburg North Village was anchored by a Coles supermarket.

Coles Group has also recently banked about $45 million selling three properties on a leaseback, in Western Australia.

Ten months ago we reported that Coles had acquired a retail asset, recently set up as a “small format store” in Melbourne’s leafy Surrey Hills.

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Marc Pallisco

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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