Coles buys supermarket on suburb’s biggest commercial block
Coles is buying a supermarket at the top of a small bayside retail strip from its landlord which has held since 1988.
At 361-371 Bluff Road, Hampton, the 5274 square metre investment – also the suburb’s largest Commercial 1 zoned holding – with 101 car parks collected $17.2 million following a public marketing campaign last month.
The result demonstrates a low 2.7 per cent net passing yield.
It also reflects a rate per sqm of building area of $10,437.
Stonebridge’s Justin Dowers and Kevin Tong acted for the vendor which paid $2.915m.
Coles withdrew a caveat as a tenant last week.
Development upside
The Hampton property was offered with a lease expiring in 2028 with a five year option.
Without that, it offers significant development upside – up to four floors, including residential could be considered, the agents said (story continues below).
Abutting Brighton, Hampton’s median two bedroom apartment price is $849,000, according to REA Group.
For three bedroom units, this is $1.353m.
The supermarket could also be extended, perhaps with a second level and/or an underground car park, agency sources add.
The deal comes six months since Coles outlaid a speculated c$100m for an outlet it occupies, and neighbouring shops, in Balaclava.
In that transaction, the result for the supermarket alone is speculated to reflect a two pc yield – the lowest in Australia yield for an asset of this type.
Last August meanwhile, rival Woolworths purchased an outlet it occupies in Hawthorn for $12.85m reflecting a c.3.3pc return.
It has also snared two malls Coles-anchored shopping centres in the past 12 months.
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