Stawell IGA supermarket sells for $5.11 million

A supermarket in the regional Victorian town of Stawell has sold for $5.11 million.

The 126-130 Main Street, Stawell property comprises a total trading area of 1,622 square metres and more than 100 onsite car parks.

The property is anchored by a new 15-year lease to Ritchies SUPA IGA.

It received eight offers during the sales process, according to CBRE’s selling agent Joseph Du Rieu.

Du Rieu, who brokered the sale with Kevin Tong and Justin Dowers, said the sale – reflecting an initial yield of 5.82% – is a sign of the strength of Victoria’s retail investment market.

“Although there have been well publicised concerns around the potential increased cost of debt in the coming months, this transaction highlights the strength of the current buyer market and is further evidence of investors taking a long term position on these supermarkets,” he said.

“We were blown away by the response for this property from the 90 plus buyers who enquired, particularly given the location in a township where the permanent population is less than 10,000 people.

“Given that yields of 5% have typically been reserved for supermarkets operated by Coles or Woolworths, we feel this is a very strong result and a sign of the current market environment.”