Aldi store sells for $11m as essential services hit the mark
Investor appetite for properties leased to essential services or food retail businesses show no signs of waning with strong demand for two Melbourne properties taking yields below 5 per cent.
An Aldi Supermarket at Mordialloc in Melbourne’s outer eastern suburbs is believed to have fetched just under $11 million after stiff competition from local, interstate and international investors.
Located on the ground floor of an apartment complex, the 1500 square metre (sq m) supermarket including 65 car spaces featured a 10-year leaseback with additional options and was sold on a yield of around 4.5 per cent.
“Metropolitan supermarkets are extremely rare at present and the fundamentals have never been better, which was reflected through the amount of enquiry and offers received,” said agent Justin Dowers from Stonebridge.
On the western side of Melbourne, local developers Strintzos Property Group and Dacland sold an outer suburban service centre anchored by a 7-Eleven service station and KFC at Tarneit for $19.9 million.
The newly-developed property, leased to a mix of seven convenience and food related tenants, sold on an initial yield of 3.9 per cent.
“What is particularly strong about this transaction, was the inclusion of the seven specialty shops, three of which were vacant, and the lack of impact this had on the yield,” said Stonebridge agent Rorey James.
A major attraction for investors was the 10,000-square-metre site on the corner of Derrimut Road and Dohertys Road with exposure to 34,200 vehicles a day.
Both properties were brokered by Justin Dowers, Rorey James and Kevin Tong from Stonebridge.
