Buyers going wild for prime Tassie Coles

The phone has been ringing off the hook for the agent appointed to sell the Sandy Bay Coles Supermarket site.

Since this blue-chip investment property was launched to market about three weeks ago it has grabbed the attention of local, interstate and international investors.

Almost a decade ago, 260 Sandy Bay Rd sold for $7.09 million, according to CoreLogic. But in today’s market, it will set the buyer back quite a bit more than that.

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Knight Frank sales consultant Matthew Wright says feedback from the market indicates a price in the $16 to $17 million range.

Knight Frank commercial sales representative Matthew Wright is selling the Coles site in Sandy Bay. Picture: Roger Lovell.

Wright says investors see Hobart’s commercial property market as an attractive investment.

He says in the past 12 months there has been a strong surge in interest and investment in the Tasmanian market, particularly in Hobart.

“As a capital city, it provides a lot of untapped potential for investors to secure high-quality assets,” Mr Wright says. “Supermarkets are a highly sought-after asset for large investors, particularly interstate and international investors.

“In a location such as Sandy Bay, it ticks all the right boxes for serious buyers in that class.”

Tenanted to Coles, a wholly-owned subsidiary of Wesfarmers Limited, on a renewed lease to 2028, the property recently underwent a significant $2.2 million refurbishment.

Wright says many supermarket investors have to wait five to seven years for rental growth, however this high-performing asset could provide percentage rent returns almost immediately.

The supermarket enjoys a prime position in Hobart.

He says inquiries have come from a mix of locations, including Asia.

“Sandy Bay’s residential and commercial property market has a high level of Chinese investment,” he says.

“Asian investors are looking further afield from the tightly held, pricey markets of Sydney and Melbourne.

“Coupled with the significant local and interstate interest, we are expecting strong competition on this asset.”

The expression of interest campaign for 260 Sandy Bay Road, Sandy Bay, closes on Thursday at 4pm.

This article from The Mercury first appeared as “Coles Supermarket Sandy Bay set to fetch $16 million plus”.