Coles has sold a three year old Victor Harbor retail investment to Adelaide businessman Andrew Gwinnett.
The 2.4 hectare asset, 5 Adelaide Road, McCracken – the only Coles on the Fleurieu Peninsula – is trading for $33.5 million reflecting a 4.12 per cent yield.
The vendor offered a 10 year leaseback on the component of the 4676 square metre complex it occupies.
F45 and The Reject Shop are the other tenant clients.
The sale comes three years since Bunnings, which (like Coles once), is held by Wesfarmers, banked $21.3m – a 5.13pc return – selling a neighbouring hardware store with a leaseback, developed at the same time as 5 Adelaide Rd, to Melbourne’s Durlacher family.
In the second half of 2021, Woolworths sold two supermarket anchored shopping centres of a similar size to McCracken: Greenvale Lakes, north of Melbourne, for $27.7m – a 3.95pc yield – and in Bulli, near Wollongong, for $36m reflecting a fully let four pc return.
Victor Harbor is about 80 kilometres south of Adelaide (story continues below).
Five offers at sub 4.25pc yield: agent
JLL marketing agents Ben Parkinson, who marketed 5 Adelaide Rd with Jacob Swan, said sixteen offers came in – with five bids at values reflecting a sub 4.25pc return.
“The investors were most attracted to the new 10 year Coles lease, low maintenance required, little capital expenditure requirements over the short-medium term and strength of covenant,” he added.
“The demand and depth of capital that Victor Harbor Coles generated throughout the on-market process reinforces the strength of strong anchored neighbourhood supermarkets,” according to the executive.
In December, we reported the Gawler Green shopping centre, in Adelaide’s north, was purchased by private investor Tony Scaffidi for $46m reflecting a 4.7pc yield. Negotiated by Mr Parkinson and Mr Swan with Leedwell’s Andrew Zammit and Jamie Guerra, that deal was the state’s highest for a neighbourhood mall last year.
Subscribe to our newsletter at the bottom of this page.