Aldi sells former Sydney supermarket site to investor for $21m
Retailer Aldi has sold a former supermarket site in western Sydney for $21 million to a private Asian investor who eventually plans to redevelop the property.
Aldi put the Auburn site on the market amid expectations of a sale price above $15 million, moving its supermarket down the road to the Auburn Central shopping centre.
An investor paid $21.08 million for the 3889sqm Harrow Road property after an expressions of interest campaign.
There was strong interest in the corner site from a range of buyers, according to Ray White Commercial Western Sydney director Joseph Assaf.
“We anticipated extremely strong demand for the asset given its close proximity to Parramatta CBD and the lack of stock available on the market for developers,” Mr Assaf said.
“The campaign certainly lived up to expectations with substantial interest coming from investors, owner occupiers, and developers – a testament to what was on offer.”
Aldi stopped trading at the site, which is zoned for mixed use, on 25 November 2020 after fitting out a new supermarket in Auburn Central. The neighbourhood shopping centre now has three supermarkets: Aldi, Woolworths and Tong Li.
Elanor Investors Group sold the Auburn Central centre to SCA Property Group for $129.5 million in late 2020.
Ray White Commercial Western Sydney managing director Peter Vines said the Aldi and Auburn Central sales showed the suburb of Auburn was becoming a real attraction for the investor and developer market.
“The fundamentals for commercial property have never been better, with low interest rates and government incentives really stimulating the market,” Mr Vines said.
“Being on the doorstep of booming Parramatta is also having a real effect as buyers look to be closer to the ‘second Sydney’.”
The deal added to the four Aldi distribution centres acquired by property fund manager Charter Hall and global institutional investor Allianz Real Estate, part of financial services group Allianz, for $648 million in a sale and lease back deal in June 2020.
Supermarkets themselves are expected to remain highly sought after by investors, with the coronavirus pandemic adding to demand for properties with blue-chip, daily needs tenants like Aldi, Woolworths, Coles and IGA.