The sale of a freestanding Coles supermarket on the south-western coast of Victoria is expected to ignite significant investor interest amid strengthening demand in the state’s retail investment market.
CBRE’s Justin Dowers, Mark Wizel and Joseph Du Rieu have been appointed to sell the Coles supermarket at 133-141 Lava Street on behalf of a Melbourne-based private investor.
The sale marks the first offering of a freestanding supermarket in Victoria for 2016.
Positioned in the heart of the Warrnambool town centre, the property benefits from a 40 metre frontage to Lava Street and a secondary access point from Kepler Street, providing access to 153 onsite car parks.
Redeveloped in 2008 by renowned retail developer, Lascorp Group, the property is offered for sale with a highly attractive 20-year initial lease term to Coles, with options to extend until 2048. Boasting a ‘semi-gross’ lease structure with a net income of approximately $803,000 per annum, the property provides a simple and secure investment opportunity.
Mr Dowers said demand for premium single tenanted retail investments had reached an unprecedented level.
“Investors have always recognised the security of bricks and mortar property investments, but now it has become even more evident as many investors are shifting their focus from stocks to property,” Mr Dowers explained.
“Single tenanted retail investments with long term leases to the likes of Coles and Woolworths are seen as real ‘blue chip’ opportunities - as such we anticipate this property to be highly sought after.”
CBRE’s Mr Wizel said the property was expected to yield strong interest from local and offshore investors, as well as private and institutional syndicated funds.