Coles Five Dock supermarket sold for $19.66 million on record yield

Coles Five Dock supermarket sold for $19.66 million on record yield
Coles Five Dock supermarket sold for $19.66 million on record yield

A Coles Five Dock strata-titled supermarket has sold for $19.66 million at a record net yield of 4.89 per cent, the first full line metro supermarket put on the market since 2015 in Sydney.

The sale beat the previous NSW record set by the sale of the Woolworths supermarket at Casula in Sydney's west in 2015 on a net yield of 5.11 per cent, according to selling agents James Wilson and Alexander Elliott of Colliers International.

It was snapped up by a NSW investor.

It was marketed via an expressions of interest campaign in February with price expectations in the $20 million range.

The property at 4-12 Garfield Street is a modern 3,430 sqm supermarket with a new 20-year lease to the supermarket chain. 

The property earns a net income of $960,489 pa.

"The transaction of this strata supermarket highlights the maturity of Sydney's investment market to focus more on the underlying performance of the asset as opposed to its title. This is a positive sign for the maturing Sydney retail investment market and great news for mixed-use developers looking to maximise their returns on Sydney developments," Wilson said.

Elliot said they fielded more than 200 enquiries from domestic and offshore investors.

The 3,333 square metre Coles-anchored stratum supermarket  features a restaurant and basement parking for 163 vehicles. 

The buyer acquired the property from the private developer of the property, who had previously sold the original Superbarn business at the property to Coles.

Tags: 
Sydney Retail Sales

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