Coles’ Fishermans Bend site reels in investors in big sale

The Coles supermarket site in the base of the R.Iconic tower at Fishermans Bend has sold for $17.5m.

The Coles Local supermarket at the base of the R.Iconic tower in the Montague precinct at Fishermans Bend has been snapped up for $17.5m.

The sale of the first major supermarket offered in Australia’s largest urban renewal precinct was a big show of faith from investors, the selling agents said.

Fitzroys Chris Kombi, Chris James and Ben Liu handled the sale at 263 Normanby Rd, South Melbourne.

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Coles and Liquorland have started trading this year from the leased 1752sq m property at the base of the 31-level residential tower.

The complex has a 90m frontage to Normanby Rd and Boundary St, with 456 apartments within the tower, with a second stage set to deliver 471 dwellings across 40 levels next door.

Mr Kombi said though inner city Coles investment opportunities were extremely rare, the trade growth potential was unrivalled.

“This campaign and the result were essentially a big show of faith from investors in the future of Fishermans Bend,” Mr Kombi said.

“The R.Iconic development is one of the best new buildings in the precinct, which further drove the heated competition between buyers.

The Coles supermarket site in the base of the R.Iconic tower at Fishermans Bend has sold for $17.5m.

“Local, national and international buyers all recognised the never-before-offered chance to invest in a brand-new blue-chip retail asset located in Australia’s largest urban renewal precinct.”

Mr James said Coles had astutely selected the position opposite the Montague light rail station, where 4800 dwellings to stand within a 500m radius of the property were in various stages of completion, planning and construction.

“Coles undertook a feasibility study of the area and has made the astute decision to get into a prime location of the Montague precinct, within affluent South Melbourne, in a corner site on the cusp of a building boom. Investors clearly agreed on the strategic location and its trade prospects which will underpin the lease covenant.”

The 480-hectare Fishermans Bend has a population of 4354, but the City of Melbourne expects that to boom to 80,000 by 2050.

“We already starting to see the development potential of the Montague precinct come to fruition. We’re also starting to see the flow-on effect to the area’s retail landscape.