Coles lists Woodend supermarket
Coles Group could be set for a $30 million-plus payday divesting a near new Woodend supermarket.
The freestanding 3780 square metre complex was listed this week with a 10 year leaseback; the starting annual net income is $1.43 million.
It occupies a 1.1 hectare town centre site with 187 car parks.
Coles completed it in 2018 and has renewal options in 2030.
Woodend is 70 kilometres north west of Melbourne.
Stonebridge’s Justin Dowers, Kevin Tong and Philip Gartland said their listing at 59-61 High Street is the city’s first supermarket offering this year.
“The major supply/demand imbalance, combined with the positive shift in supermarket fundamentals, stamp duty concessions and the low cost of debt are expected to drive record pricing,” the agents added (story continues below).
Low yield expected again: agents
Last week a Woolworths backed Torquay supermarket with adjoining development site traded for $25.1m reflecting a low 3.65pc yield (or 3.97pc excluding the land).
In recent years, Victorian investments of this type have sold for prices reflecting sub five pc returns.
“Standalone supermarkets are extremely rare at present and fundamentals have never been better,” Mr Dowers said.
“Coles Woodend ticks all the boxes; a blue-chip supermarket achieving strong sales growth, a modern building with depreciation benefits, a long 10-year lease and a prime position opposite Woodend train station,” he added.
The catchment is more than 30,000, according to the agent – a number expected to grow 1.6pc each year for a decade.
