Coles Group has sold one of its retail assets in the northern Brisbane suburb of Kedron for $34.24 million, setting a record for the highest sale of a freestanding supermarket in Queensland.
This latest sale is part of Coles’ sell-off strategy to take advantage of a strong investor appetite for non-discretionary retail property and to reinvest the proceeds into its operating business as it takes on the likes of Aldi, Woolworths and IGA in a highly competitive supermarket industry.
The 4092-square-metre property, which was developed by Coles and opened in late 2017, comprises a 3915sq m Coles supermarket and Liquorland store, as well as a Coles Express service station and cafe.
Sources said the deal was struck on a yield in the low 5 per cent range.
The fully leased centre, with a weighted average lease expiry of 14.7 years, was sold to a Melbourne-based investor late last year but has only now settled.
The transaction was brokered by Savills’ national retail investment team, Peter Tyson, Ben Parkinson and Steven Lerche.
“The supermarket’s high-exposure location on the outbound side of Gympie Road, within 7 kilometres north of the CBD, was a valuable drawcard,” Mr Tyson said.
“Coles Kedron’s highly convenient freestanding design differentiates it from larger, less-convenient surrounding shopping centres, ensuring it will remain attractive to shoppers in the long term.”
Coles has another retail asset on the market, a neighbourhood shopping centre in Canberra, Coles Amaroo Village, which could fetch about $30 million.
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