Woolworths supermarkets fly off the shelves
Two outer-east supermarket sites have sold for more than $5 million above expectations in keenly contested auctions.
An in-room event in Richmond and at two suburban sites were among five auctions held by CBRE on August 8, which saw multiple bidders and strong crowds.
Local investors joined those from New South Wales, Queensland and overseas in the bidding.
“The top sale was for the Woolworths supermarket in Burwood East which fetched $18.18 million or some $3 million more after it was declared on the market,” CBRE project head Joseph Du Rieu says.
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The Woolworths store in Scoresby climbed $2.62 million above reserve to sell for $15.12 million. The site is owned by the trust of the late philanthropist Les Erdi and has a long 12-year lease remaining.
“There was spirited bidding on the night and it is not often that two metropolitan supermarkets came on the market at the same time,” Du Rieu says.
“We had more than 40 bidders across the day which showed that there is plenty of money out there looking for quality investments.”
He notes the in-room event was the sixth CBRE Premium Property Portfolio Auction campaign, following earlier successes.
The CBRE strategy is to offer “quality assets to overseas, Asian and local investors using a national platform” to secure the best prices for sellers, Du Rieu says.
The evening also saw an investor successful with phone bids from overseas for a KFC outlet on River Hills Rd, Eagleby in Queensland, which sold for $3.725 million.
Another property along the street, a Caltex petrol station, changed hands for $12.05 million.
An industrial lot occupied by European multinational Veolia in Brooklyn went for $3.525 million.
In Mt Waverley, four overseas and three local investors competed and took the price of a shop at the Hamilton Place shopping hub to a $1.66 million sale.
In Brighton, the Sportsgirl shop on Church St sold for a hefty $8.2 million or $3.2 million more than the reserve. There were six bidders, with a local investor placing the highest bid.
This article from Leader Newspapers originally appeared as “Woolworths sites a big-ticket win with investors as properties fly off the shelves”.