CBRE nail strongest yield yet for Masters Hardware offering
A private Melbourne investor has purchased the Williams Landing Masters store for $36 million.
It was bought from listed property company Cedar Woods through CBRE agents Mark Wizel and Justin Dowers.
The Masters home improvement store was sold with a 20-year net lease, 100% guaranteed by Woolworths and returning a net income of over $2 million.
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Reflecting a yield of 6%, the sale of the not yet two year old store represented the strongest yield ever achieved for a hardware store in Australia.
“We were really taken back at both the depth of offers and aggressive nature of bidders for this asset,” Wizel said. He noting other recent Masters store sales included Dandenong, Western Australia and Penrith all achieved yields of between 6.75% and 7%.
“The latest sale at 6% shows the significant increased confidence that buyers have in the Masters covenant and the longer term outlook from investors in relation to the Masters platform as a business,” Wizel commented.