Rich List family sell supermarket in 24 hours

Also today, we are reporting Region Group took a small hit selling a Tasmanian mall.

A Smorgon family arm will bank just over $21 million from a Woolworths-backed mall held for over 50 years in central Colac.

With six specialty stores, the Woolworths Centre returns annual rent of $1.26 million.

The result for the 1.18 hectare holding, 2-16 Bromfield Street, from an offshore investor in their first supermarket foray, reflects a 6.01 per cent yield.

The Commercial 1 zoned Colac site spreads 1.18 hectares.

The offer was unconditional 24 after the expressions of interest campaign closed (March 7).

The Holckner family – whose patriarch, David partnered with Victor Smorgon to take on BHP’s near monopoly on steel in the early 1980s – was the vendor.

Woolworths Centre

Also known as the Woolworths Centre, the Colac mall contains 5366 square metres with six specialty tenants including Bakers Delight, Blooms the Chemist and EG Ampol, and 159 car parks.

The supermarket rents 84pc of the lettable area; its lease is triple net.

It has also occupied for decades.

On land zoned Commercial 1 in a central retail precinct fronting Corangamite and Rae streets, neighbours include Aldi, Best & Less, Bunnings and Coles.

The sale comes a year since the family divested a Bunnings backed investment in Melbourne’s inner north east Collingwood for a price reflecting a sub five per cent return (story continues below).

Six years ago meanwhile the group offloaded the ex-Country Road headquarters in Abbotsford for c$41m to another local family, the Alters, which refurbished.

Best yet to come: agents

Colac is the biggest service centre between Geelong and Warrnambool; its municipality accommodates some 21,000 people.

Key industries include agriculture, healthcare, hospitality and timber production.

Gross Waddell ICR’s Michael Gross, Danny Clark, Alex Ham and Glen Ye marketed the Woolworths Centre.

The supermarket is forecasting upward sale projections and the property offers refurbishment and development upside including adding click-and-collect facilities.

The incoming owner will be able to claim a 50pc stamp duty saving too.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of