A regional Victorian Coles anchored neighbourhood shopping centre has transacted for $20,075,000, representing a yield of 5.08%.
Located in the heart of the Murray River, 338km north of the Melbourne CBD, the 3,452 sqm* shopping centre was offered to the market by the fast-growing agency Stonebridge Property Group- Justin Dowers, Kevin Tong and Philip Gartland.
The shopping centre was built in 1995 and was converted from a Bl-LO to a Coles supermarket in 2012. The property occupied an 8,230 sqm* town centre site and comprised of a Coles Supermarket, Liquorland and four speciality shops.
"The attraction for regional supermarkets and shopping centres is continuing to grow, especially those on traditional net leases and witnessing rental growth with the supermarket being in percentage rent. When you couple this with the lack of metropolitan opportunities and 50% stamp duty concessions, buyers are seeing regional opportunities as an attractive alternative." Stonebridge Partner Justin Dowers said.
The campaign witnessed strong competition with over 170 enquiries received resulting in in 11 first round offers. This included bids from private Investors, offshore investors, listed funds and unlisted funds.
"Acknowledging the lack of supply in metropolitan locations, we are seeing increased interest from international Asian investors for regional investments. Whilst they were not the eventual purchaser, their interest in regional locations is growing especially with the growth they are noticing firsthand within these key regional hubs." Added Mr. Tong
The property sold on an unconditional contract to a private investor from Victoria.
This sale follows Stonebridge Property Group's recent run of supermarket and shopping centre transactions including:
Coles Woodend ($33,300,000 // 4.31% Yield)
Woolworths Ascot Vale ($19,150,000 // 4.63% Yield)
Woolworths Torquay ($25,100,000 // 3.65% Yield)
Newcomb Central Shopping Centre (circa $43 Million)
