Coles Five Dock supermarket sold for $19.66 million
A private investor has scooped up Coles Five Dock strata-titled supermarket for $19.66 million, at a record net yield of 4.89 per cent.
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, selling agent Colliers International’s James Wilson, who sold the property with Alexander Elliott, said.
“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,” Mr Wilson said.
“As the first full-line Sydney metropolitan supermarket brought to market since 2015, we were inundated with established and emerging domestic and offshore investors.”
The modern 3333-square-metre Coles-anchored stratum supermarket at 4-12 Garfield Street features a restaurant and secure basement parking for 163 vehicles. It is part of a mixed-use development in Five Dock, less than 10 kilometres west of the Sydney CBD.
The gross lettable area for the property is 3430 square metres, bringing a fully leased annual net income of $960,489.
Mr Elliott said there were 200 inquiries for the property.
It is understood the buyer acquired the property from the private developer of the property, the Koundouris Group of companies, which had previously sold the original Superbarn business at the property to Coles.
