A Woolworths Metro supermarket up for grabs in inner Melbourne
A Woolworths in a prime inner Melbourne location is up for sale, offering investors a chance to secure a pandemic-proof supermarket on a large landholding with development potential.
The Woolworths Metro in Hawthorn has been described as a “once-in-a-lifetime opportunity” to buy a supermarket in the heart of the affluent and sought-after Glenferrie Road retail strip by the selling agents at Stonebridge Property Group.
“Single tenant supermarket investments are considered to be the most desirable investments in the market at the moment and Hawthorn is one of the most desirable locations in Melbourne,” Stonebridge partner Justin Dowers said.
The Woolworths Metro supermarket is located in the inner-Melbourne suburb of Hawthorn. Picture: realcommercial.com.au/for-sale
The pandemic has strengthened demand for supermarkets with blue-chip, daily needs tenants like Woolworths and Coles, with investors increasingly targeting essential and non-discretionary retailers.
Woolworths Metro Hawthorn is a smaller format store. The 1827sqm supermarket has a five-year lease with Woolworths.
It is located opposite the Coles Local supermarket that sold for $24.5 million in an off-market deal in November, setting a record low yield of 1.9%.
“The ability to replace a Woolworths in Hawthorn is just so difficult because of the very high underlying land value and established nature of the commercial environment,” Mr Dowers said.
“This is why the Coles Local opposite this centre transacted at such a sharp yield and high rate per square metre of land [of just over $16,800].”
The commercial 1-zoned Woolworths sits on a parent site of 3640sqm opposite Glenferrie train station.
The selling agents said there is opportunity for a buyer to acquire the remaining lots in the Glenferrie centre to maximise the site’s development potential.
Stonebridge partner Julian White said the property represented the chance to secure a major piece of one of the best future development sites in metropolitan Melbourne.
“Large landholdings in such prime inner-city locations close to retail and public transport amenity are very rare,” Mr White said.
The smaller format Woolworths supermarket sits in the heart of the busy Glenferrie Road retail strip. Picture: realcommercial.com.au/for-sale
Stonebridge Asia Practice partner Kevin Tong said the Glenferrie Road precinct is thriving again after the reopening of Australia’s international border and the return of students, with the Swinburne University of Technology campus nearby.
“We anticipate strong demand from both local and offshore high-net-worth Asian investors, especially those who reside in the surrounding south eastern suburbs,” Mr Tong said.
The metro Woolworths is the latest supermarket offering this year, with two highly-prized freestanding suburban supermarkets – Woolworths Eltham and Coles Lalor, both in Melbourne – up for sale.
