Investors turn on the taps as four Coles liquor stores ring up $15 million tab

Investors have shown a healthy appetite for liquor stores leased to Coles’ subsidiaries with four NSW retail outlets bringing in more than $15 million as part of a successful Burgess Rawson portfolio auction held in Sydney this week.

Prices ranged from $2.315 million for the Liquorland Belmont in Newcastle on a yield of 7.89% to $4.33 million for the Vintage Cellars Freshwater in Manly on a yield of 6.87%.

The two other liquor stores both sold in excess of $4 million.

First Choice Liquor in Naremburn sold for $4.3 million (8.03%) while Vintage Cellars in Cremorne sold for $4.2 million (6.86%).

Each of the stores return rental income in excess of $180,000 per annum.

The pubs were sold by auctioneer David Scholes of Auctionworks who says the retail property investment market is showing “great signs of confidence at the moment and should continue the trend for quality listings”.

Ahead of the auction Burgess Rawson agent Billy Holderhead said the liquor store market is receiving solid interest because private investors have confidence in the familiar brands that lease them.

“At the moment, you’ve got either Woolworths or Wesfarmers tenants. You get at least a 5-year lease term with solid tenants.

“If you’ve got a tenant you’re comfortable with and familiar with and read about on a daily basis, you feel more comfortable with that,” he said.

Other properties to sell under the hammer included to childcare centres in Morriset and Macquarie Fields, which sold for $1.925 million and $1.53 million respectively.

An Aldi supermarket in Dural was passed in on a bid of $3.625 million.

In total more than $28 million worth of commercial property changed hands at auction.