Is this Australia’s richest supermarket?
They’re calling it Australia’s most valuable freestanding Woolworths supermarket, and they might be right.
Nestled in the heart of Brighton – consistently ranked among Australia’s most affluent suburbs and home to many of Melbourne’s rich and powerful – the Middle Brighton Woolworths will never be short on cashed-up clientele.
The supermarket on upmarket Church St is on the market and, if the yields achieved for other suburban Woolworths hold true, could sell for upwards of $20 million.
The Middle Brighton Woolworths is arguably one of the best-located freestanding supermarkets in the country and early interest has already indicated it will be fiercely competed for
CBRE’s Mark Wizel, Justin Dowers, Kevin Tong and Joseph Du Rieu are marketing the property, which will be sold via an expressions of interest campaign that ends on June 16.
Its listing on realcommercial.com.au describes it as “Australia’s most valuable freestanding Woolworths”.
Spread over a 4700sqm site, the 3307sqm store was recently extended and refurbished, with the supermarket giant signing a new 25-year lease with further options.
It also has parking on the title and adjoins a council car park with space for around 200 vehicles.
Wizel says the blue-chip supermarket, which attracts annual rent of $1.21 million, is already attracting heated investor interest.
“The Middle Brighton Woolworths is arguably one of the best located freestanding supermarkets in the country and early interest has already indicated it will be fiercely competed for.”
Single-tenanted retail investments offer a sense of security, as the income is generated from a single source with leases of a long-term nature
“With the end of the 2015/2016 financial year looming, and the federal election scheduled for July, we’re seeing private investors keen to take advantage of the current economic climate and strengthening demand for quality retail investments.”
The upcoming sale of Middle Brighton Woolworths continues a strong trend of low-yielding supermarket deals, with Woolworths lease covenants continuing to be keenly sought after.
Among recent Woolworths sales, a store in Launceston traded for $22.5 million on a sub-6% yield, while another in regional Victorian hub Moe sold for $14 million on a yield of 6.1%.
The Woolworths at Culburra Beach on the New South Wales south coast slipped below a 5% yield when it sold for $9.4 million, while another at Caulfield North in Melbourne sold for $9.5 million on a 5.1% yield.
Wizel says investors continue to seek out stable, long-term opportunities.
“Single-tenanted retail investments offer a sense of security, as the income is generated from a single source with leases of a long-term nature,” he says.