Investors snap up NSW supermarkets
Two supermarkets in the heart of their respective New South Wales towns have traded to private investors.
In the biggest deal, the Gundagai Woolworths fetched $7.2 million – a 6.96 per cent yield – from a local.
On 5382 square metres, zoned E1 Activity Centre, with 64 car parks at 246-250 Sheridan Street, it contains 2211 sqm.
Turnover rent is built into the lease agreement which sees Woolworths also pay GST and outgoings.
Annual income could increase about $50,000 with the activation of three retail tenancies; Gundagai centres around the Hume Highway, Australia’s second most trafficked road route, connecting Sydney and Melbourne.
Four bidders contested at the April 23 auction pushing the reserve $200,000.
Victorian snares Coles Narrandera
Meanwhile, Coles Narrandera traded after the same auction event for $6.1m – a 7.61pc net return.
With 54 car parks on a 5605 sqm Village Use zoned site at 101-107 East St, also fronting Bolton and Charles streets and a right of way, it contains 2119 sqm (story continues below).
The supermarket recently committed to a 10 year lease.
With options it can stay until 2054.
It also picks up all outgoings including land tax.
The lease agreement includes turnover rent too – increasing a projected rent, based on recent trading figures, from c$464,5000 to just over $494,000.
The buyer is Victorian.
Jones Real Estate’s Paul Jones and Tim Spargo were the agents.
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