High profile vendors bank $33.3 million from Melbourne supermarket sales

Woolworths Scoresby traded for $15.12 million

High profile investors have offloaded two Woolworths-leased supermarkets in Melbourne for a total of $33.29 million.

In the largest deal, the Nossbaum family reaped $18.17 million from the sale of an asset in Burwood East, about 17 kilometres east of the city. The 3400 square metre outlet, with BWS liquor store and 394 at-grade car parks, occupies a 1.5 hectare site at 42-50 Burwood Highway.

Returning a yearly income of $832,000, this asset is exchanging on a 4.6 per cent yield, following a campaign managed by CBRE’s Mark Wizel, Justin Dowers, Joseph Du Rieu and Kevin Tong.

Further east in Scoresby, which is about 29 kilometres from town, investment banker Michael Naphtali, with lawyers Jeffrey Pinch and Jeffrey Appel, also sold a Woolworths-leased supermarket, which they have owned for some 33 years.

The prominent asset on the north-west corner of Ferntree Gully and Stud roads is tenanted until 2030, with options allowing Woolworths to extend its stay to 2050. On a 7200 sqm block with 93 car parks, the 6977 sqm supermarket returns annual rent of $673,000. It sold for $15.12 million, a yield of 4.5 per cent.

Mark Wizel, Kevin Tong and Justin Dowers, with colleague Dylan Kilner, marketed this Scoresby site.

The supermarkets were part of a portfolio of seven properties offered by public auction on Wednesday, August 8, 2018.

The agency sold all properties “under the hammer” – for a total of more than $62 million and on an average yield of just over 4 per cent.

Other assets to sell include a Caltex Eagleby (which achieved a price of $12.05 million) and a retail asset, leased to Sportsgirl in Melbourne’s ritzy suburb of Brighton (this asset exchanged for $8.2 million).


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Marc Pallisco

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