Woolies buys another Coles
Woolworth has quietly picked up a south west Sydney supermarket leased to Coles seven more years.
The 2675 square metre complex, 5-13 Clarke Street, Earlwood (pictured, top), cost c$41 million, sources say.
The result is speculated to reflect a three per cent yield.
The seller, a local investor, paid the Charter Hall Retail REIT $28.72m in mid-2018, at auction.
That price demonstrated a 4.2pc return.
It was also against $23m price hopes.
JLL’s Sebastian Fahey and David Mahood brokered the latest sale off-market.
Woolies buys another Coles supermarket
The Earlwood centre’s catchment is c25,000 with Coles’ trading performance previously marketed as strong.
On 3037 sqm zoned B2, abutting an 80 bay council car park, the asset holds significant longer term development upside, able to yield a c14 level building.
About 650 metres from Baldwell Park train station, residential could be considered.
It is expected Woolworths will move in – possibly as the retail component of a mixed use complex.
The deal comes two years since Woolworths outlaid $51m for a Coles anchored mall at The Entrance, on the Central Coast.
Also in 2023, Woolworths acquired a Coles backed mall in Sydney’s Miranda for a speculated $68m.
IP Generation, now owned by MA Financial, was that seller.
Earlwood is about 10 kilometres from town.
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