Coles lease helps secure 5.4% yield for Melbourne mall

As the RBA warns investors to watch their yields, the first Victorian mall sale has been recorded this year on a sharp passing yield of 5.4%.

Late 2014 sales were at yields of 6.3% and 6.9%.

CBRE research data noted the compression in yields correlates to the decline in the cost of debt, along with the falling 10 year bond rates.

CBRE's director of retail investments, Mark Wizel, tips a record sub-6% yield for sub-$100 million, non-discretionary retail centre transactions this year.

The latest sale was $13.3 million for the Maroondah Village Shopping Centre, a neighbourhood shopping centre in Melbourne's outer north east.

The 3,092 square metre shopping centre is anchored by a 2,074 square metre Coles supermarket.

The property failed to sell when taken to market in 2012, when there were only three years remaining on the Coles lease.

Coles recently renewed its lease for another 10 years, plus options.

The net income was advised as $844,000 annually at June 2016.