A freestanding Woolworths occupying prime position in the Coffs Harbour CBD is set to be the first pure NSW supermarket with no specialty shops, publicly marketed in 2020.
The property is likely to be hotly contested, given the pent-up demand for pandemic-proof assets and the centre’s $17 million price expectations.
Colliers International’s James Wilson, National Director of Retail Investment Services, and Alex James-Elliott, Executive, Retail Investment Services, are handling the sale, with the campaign launching in Q4 2020.
Woolworths Coffs Harbour comprises a full line Woolworths supermarket investment that is strategically located in the Coffs Harbour CBD, approximately 527kms north of Sydney and 384kms south of Brisbane. The supermarket occupies a significant 4,464m2 site on Park Avenue that enjoys prime exposure and multi-directional access from the Pacific Highway.
“Supermarket investment demand, specifically from the private investor market, coupled with the record low cost of debt is anticipated to drive purchaser engagement for this campaign,” said Wilson. “With 100% of the investment’s income being secured by a rare Woolworths net lease for an ASX top ten company, the essential service nature of this offering will prove attractive to a number of investment groups.
“Based on the supermarkets’ historically strong performance, reflected in its 4% MAT growth over the last 12-months, Woolworths Coffs Harbour provides a rare opportunity to acquire a supermarket with potential for imminent turnover rental growth.”
James-Elliot added, “There have only been two supermarket transactions announced this year to date in 2020, with only one of these assets publicly marketed. With only three supermarkets traded in 2019, current investor demand for single-tenanted, pandemic-proof investments, with secure covenants leases has not been satiated.
“We expect further opportunities for investors to secure freestanding supermarkets in NSW for the remainder of 2020 to be limited, further underlining the scarcity of the Woolworths Coffs Harbour opportunity.”