Coles buys Woolies' Neutral Bay premises

Jonathan ChancellorMarch 27, 2013

Coles has been accused of using an elaborate Bristish Virgin Islands tax haven structure to conceal its purchase of  Woolworths' Neutral Bay supermarket premises.

The $40 million acquisition reportedly blindsided Woolworths, which has the option to renew for 10 years next year.

Under the lease the landlord has the right to inspect Woolworths' store turnover records.

Fairfax Media reported the property fight had been sparked after Woolworths removed Coles from its its Katoomba, Blue Mountains premises after more than three decade's tenancy having bought the site in 2000.

The Neutral Bay buyer, Sino Ace Investment is ultimately owned by a similarly named entity in the British Virgin Islands.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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