Industry News

First Coles Supermarket in South Australia offered to market in over 5 years

The property features a full-line Coles Supermarket, together with Liquorland, Reject Shop and gym

JLL has been appointed to sell Coles Victor Harbor – the only Coles supermarket on the Fleurieu Peninsula in South Australia. The asset comes to market with expectations of strong investor interest from around the country.

The 4,676m2 complex, across an expansive 2.4 hectare site at 5 Adelaide Road, McCracken is the first Coles Supermarket to be offered formally to the market in South Australia in more than five years. The property features a state of the art, full-line Coles Supermarket, which opened in March 2019, together with Liquorland, the Reject Shop and the F45 gym.

The location directly adjoining the brand-new Bunnings Warehouse, the strong performing anchor tenant and specialty tenancy exposure to just two national operators, underpins an outstanding investment case.

Convenient, essential service retail investments have benefitted from increased turnover throughout the pandemic, as customers seek out convenience based centres to fulfil their everyday needs.

The centre occupies a high-profile, elevated location within the Fleurieu peninsula at the intersection of Adelaide, Pt Elliot and Hindmarsh Roads. This central location allows customers from Victor Harbor, Port Elliot, Middleton and Goolwa the most convenient shopping experience in the region.

The adjacent Bunnings store was sold to a private Melbourne investor in 2019 on a 5.1% yield.

Expressions of interest for 5 Adelaide Road, McCracken closes 2 September

JLL’s Managing Director – (SA), Ben Parkinson and Joint Head of Retail Investments – Australia, Jacob Swan have been exclusively appointed to sell the property via an Expressions of Interest campaign.

Swan said many of South Australia’s neighbourhood centres were strong performers and tightly held assets, and this was reflected in the prices achieved. “The most recent sale in South Australia of a stand-alone supermarket was Drakes at Salisbury in 2020, which reflected a 5.1% yield,” he said.

“By comparison, recent sales of centres interstate have demonstrated yields consistently below 5%. These include Woolworths Bulli in NSW and Greenvale Lakes and Bellarine Village in Victoria.”

Parkinson said, “Victor Harbor, as a tourist destination, has a significant customer base of visitors and permanent residents. Coles Victor Harbor is in a perfect position to benefit from the expected continued growth in food and liquor spending.

“Coles and Liquorland have new 10-year leases. The Reject Shop and F45 have five-year leases with an annual increase of 3.5% and 3% respectively; which will clearly resonate with investors who can take advantage of this low interest rate climate.”

Expressions of interest for 5 Adelaide Road, McCracken close at 3pm (AEST) 2 September, 2021.

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