Woolworths buys another supermarket from landlord
EXCLUSIVE
Woolworths has bought another supermarket from the landlord, this time in Melbourne’s east.
The retailer is paying $16.35 million – a 3.65 per cent net passing yield – for the Doncaster East store.
It contested 21 suitors which submitted formal offers following the close of an expressions of interest campaign, the marketing agents said.
Five offers were unconditional, they added.
The deal comes six weeks since we reported Woolworths bought an Earlwood, Sydney, supermarket leased to rival Coles.
Worth $41m, that outlay demonstrated a sub three per cent net passing yield (continues below).
Woolworths Doncaster East
Part of Devon Plaza, with 18 tenancies in a separate building and a 239-bay car park – neither part of the deal – Woolworths Doncaster East at 19/958 Doncaster Road contains a full-line supermarket with a now redundant lease until 2036, which contained no option.
After that, the 3213 sqm Commercial 1 zoned block holds significant development upside – with a new supermarket able to form part of a mixed-use complex also with apartments, a planning project Woolworth has often pushed forward itself.
The deal comes more than 18 months since we reported Woolworths bought Niddrie Central, in Essendon, from the landlord.
Colliers’ Tim McIntosh, Yvonne Zhou and Will Heffernan were the agents for the Suleman family which also recently sold a Collins Street office to Fortis.
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