Pilbara Coles finds buyer

Also today, we are reporting Elanor sold Hobart’s Glenorchy Plaza.


A Pilbara region Coles – the only full line supermarket within a 275 kilometre radius – has traded between private parties.

The Tom Price Coles is trading on a seven per cent yield.

Records show the 3218 square metre tenancy, 1/969 Stadium Road, in the heart of mining town Tom Price, was offered by Cockles Pty Ltd, controlled by prominent local Phillip Hooper, who paid $6 million in December, 2014.

Millstream Cafe occupies part of the Tom Price property.

At the time the annual net return was $559,335.

In this campaign, launched March, comparable rent was negligibly higher – c$563,000.

The sale price is $8m according to sources, meaning the groups have settled on a 7 per cent yield.

Zoned both Commercial and Civic, the property, with a specialty tenancy leased to Millstream Cafe, had also undergone a renovation.

The deal comes 18 months since Australia Post divested another asset within the c1967 Tom Price Shopping Centre at 969 Stadium Rd – tenancy five, with 238 sqm, offered vacant, fetched $440,000.

Central Road frontage

For years held by Wesfarmers then Coles Myer, which sold it for $2.8m in 1998, the supermarket, with options, can occupy 1/969 Stadium Rd, also fronting Central (and previously marketed by Burgess Rawson’s Raoul Holderhead as Lot 1, Jacaranda Drive), until 2065.

The deal comes 13 years since Mr Hooper sold Busselton Boulevard Shopping Centre for $16.15m – a rise on the $14.1m paid three years earlier (story continues below).

Centuria bought Busselton Boulevard last year.

Coincidentally that asset sold again in 2023, to Centuria, for $16m.

Also anchored to Coles, with 16 specialty stores – a total 4837 sqm – that result reflected an 8.49pc yield.

The family also hold regional WA investments in, amongst other towns, Bunbury, Cue, Kalgoorlie, Newman and Albany.

Fawkner Property bought Karratha City last quarter.

Another Pilbara deal

In June, Melbourne fund manager Fawkner Property acquired shopping centre Karratha City, at the northern end of the Pilbara.

Elanor Investors Group and Vicinity were the sellers.

The deal was worth $95.9m – $800,000 more than book value – which assumed a 7.75pc capitalisation rate.

CBRE’s Simon Rooney was the agent.

More to come.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.