Free Standing Coles sells on 3.4% yield
A Coles supermarket at Mentone sold for $15.3M in an auction in Melbourne this week.
The property, at 81 Mentone Parade comprises a freestanding, internally refurbished, 2854 square metre (GLA) supermarket with access to more than 150 at-grade council car parks.
The property was sold with the benefit of a 10 year lease from January 2017, with a further 10 year option, to Coles at a current rental of $519,785 per annum net.
CBRE’s Mark Wizel, who managed the sale with Justin Dowers and Kevin Tong, said inquiry had been ‘‘through the roof’’. Two Chinese investors – one was the eventual purchaser – flew in for the auction. ‘‘Standalone supermarkets are standout performers in pretty much any market,’’ Mr Wizel said.
The site has an Activity Centre zoning which allows for a mixture of land use activities (as of right) with an overarching purpose of promoting mixed use commercial centres featuring retail, office, business, entertainment and high density residential uses.