Regional investments continue to soar as Coles Swan Hill Shopping Centre, a regional Victorian Coles anchored neighbourhood centre transacted for $20.075 million, representing a yield of 5.08%.
The shopping centre was built in 1995 and was converted from a BI-LO to a Coles supermarket in 2012. The property occupies an 8,230m2 town centre site and comprised of a Coles Supermarket, Liquorland and four speciality shops.
The 3,452 m2 shopping centre, located in the heart of the Murray River region, 338km north of Melbourne’s CBD was offered to the market by Stonebridge Property Group with a sale led by Justin Dowers, Kevin Tong and Philip Gartland. This follows similar sales of supermarket-based assets including Coles Woodend for $33.3 million and Woolworths Torquay for $25.1 million.
“The attraction for regional supermarkets and shopping centres is continuing to grow, especially those on traditional net leases and witnessing rental growth with the supermarket being in percentage rent. When you couple this with the lack of metropolitan opportunities and 50% stamp duty concessions, buyers are seeing regional opportunities as an attractive alternative”, Stonebridge Partner Justin Dowers said.
The campaign witnessed strong competition with more than 170 enquiries received resulting in in 11 first round offers. This included bids from private Investors, offshore investors, listed funds and unlisted funds.
Sales Agent Kevin Tong said, “Acknowledging the lack of supply in metropolitan locations, we are seeing increased interest from international Asian investors for regional investments. Whilst they were not the eventual purchaser, their interest in regional locations is growing especially with the growth they are noticing firsthand within these key regional hubs.”
Coles Swan Hill Shopping Centre is estimated to generate a net operating income of $1,079,000 per annum.
The property sold on an unconditional contract to a private investor from Victoria.