A Woolworths leased supermarket in Leongatha, in Victoria’s South Gippsland, sold for $14.3 million at CBRE’s 10th Premium Property Portfolio Auction (PPPA) earlier this month.
The 3143 square metre building occupies a 3267 sqm site with 142 car parks at 1-7 Peart Street.
Returning annual rent of $761,000 the complex traded on low passing yield of 5.32 per cent to a Melbourne-based investor.
Woolworths is committed to the property on a lease expiring in 2028.
Beyond that, it has eight renewal options, each of five years.
CBRE’s Joseph Du Rieu, Mark Wizel and Justin Dowers auctioned the Leongatha site as part of a portfolio at Zagame Automotive on October 10.
It was the most valuable asset to trade at the event, which reaped $32.7 million from four deals, the average yield being 5.4 per cent.
The agents said the Woolworths investment was unusual, in that it derived turnover-rent.
This also made it opportunistic, they added, with the southern side of Leongatha earmarked for more than 3000 new residents over the next 10 years.
CBRE said PPPA 10 was attended by more than 250 people.
Also at the event:
- an ALDI store and two shops in Seville (pictured, below) sold to an international investor for $8.02 million on a 5.98 per cent yield;
- a 7-Eleven leased outlet in Armstrong Creek (pictured, bottom) sold to a Melbourne investor for $5.72 million – a yield of 5.4 per cent;
- A Woolworths Metro in Abbotsford sold off-the-plan to a South Australian investor for $4.68 million – a deal which reflects a 4.93 per cent yield
Last week we reported that a Sydney investor paid $8 million for St Kilda’s Woolworths Metro – a 1574 sqm space at the ground level of the 64 Fitzroy Street apartment building R.Corporation’s Andrew Rettig built in 2002.
The second half of our story about this St Kilda sale details the plentiful supermarket-anchored retail sales to have taken place in Victoria over the past 18 months.