A local private investor has beaten a swag of other bidders to buy a rare Coles supermarket in Sydney’s inner west for $28.72 million.
The freestanding supermarket located at 5-13 Clarke Street, Earlwood, with adjoining BWS liquor store, was sold at a highly contested auction on a 4.22 per cent yield.
“There were more than 50 bids on the day and 14 bidders were registered resulting in a record for Sydney freestanding supermarket investments,” said agent Nick Willis, CBRE associate director for NSW retail investments.
There were more than 300 inquires from potential buyers eager to get their hands on a type of property that does not often come up for sale.
“Coles Earlwood marked one of the first freestanding supermarkets to be formally offered for sale in Sydney in almost three years.”
The supermarket has a net income of $1.21 million a year, from a pool of more than 25,000 shoppers in the local area. It’s leased to Coles until December 2022.
The property is on a 3073-square-metre corner site, approximately 650 metres from the Bardwell Park train station, and has B2 zoning, which allows for development of up to 14 metres.
“The result highlights the continued strength and demand for quality retail investment opportunities,” Mr Willis said.
“We are dealing with a growing weight of local, national and international capital looking to acquire retail investments, with a real focus on metropolitan locations and non-discretionary based shopping centres,” he said.
The site has potential for a mixed-use development in the future.