Two Coles and Kmart within Melbourne mall sold for $60m
Private investors have snapped up two Coles supermarkets and a Kmart in Melbourne’s Northcote Plaza for around $60 million in total, with the deals struck on yields below 5 per cent.
The 18,000-square-metre strata-titled plaza on Separation Street in Melbourne’s inner north was built in the 1980s and is rare in being home to two Coles supermarkets. It also has an apartment building at the rear.
The smaller of the two Coles, on Separation Street, is a former Bi-Lo discount supermarket, which Wesfarmers converted to Coles in 2006 to prevent a supermarket rival gaining a presence in the mall.
It is understood the larger Coles and Liquorland, at the Northern end of the Mall, sold for about $25 million to a local investor.
It had been owned by Tynan Nominees, since 1988. Directors of Tynan Nominees are Leon Goldman, James Melzak and Jack Silberscher.
A developer-investor acquired both the Kmart and the smaller adjacent Coles for a combined $35 million.
This Kmart is due to close its doors in November next year as the chain’s owner downsizes the struggling discount retailer.
It is understood the new owner intends to reposition the large one-hectare property once Kmart vacates.
Title deeds show the Kmart is owned by WA-based Ly Pty Ltd, whose directors are Thi Yen Ly and Van Tri Ly. The store last sold for $10.45 million in December 2006.
Stuart Taylor and Tom Noonan of JLL sold the larger Coles, while Rick Silberman and Ben Parkinson from Savills Australia sold the Kmart and smaller Coles.
Marc Leiba and Jonathan Rosenthal of Leiba Commercial represented the buyer of the Kmart and smaller Coles.
Alongside these three big deals – which highlight the level of appetite for non-discretionary retail property in a subdued retail market – smaller investors have also seen opportunities in the faded mall.
Earlier this year, Gorman Commercial agent Tom Maule sold the Specsavers – shop 27 – at auction for $1.1 million on a yield of 5.3 per cent.
In 2017, a family trust controlled by local agent Michael Bonadio paid $34 million for the neighbouring 6657sq m Northcote Central on a yield of 3.5 per cent.
The centre, which is positioned in front of Northcote Plaza on the High Street corner, is anchored by an Aldi Supermarket.
