Coles is selling off more of the family jewels with two key supermarkets being offered for sale that could reap more than $60 million.
As the grocery giants Coles and Woolworths battle it out in light of increased competition, selling properties and injecting cash into improving stores is now an objective.
Coles Group Property Developments – the arm which develops its own freestanding supermarkets – has appointed CBRE's Justin Dowers, Nick Willis, Mark Wizel and Joseph Du Rieu to market the Bowral Coles supermarket and Coles-anchored Westmead Shopping Centre.
"Both assets are leased back to Coles with long-term lease structures that provide minimal risk to investors and strong potential for income growth," Mr Dowers said.
CBRE's Nick Willis said the limited supply of quality retail investments such as freestanding supermarkets was still attracting very strong interest.
"Freestanding supermarkets on long-term leases are considered generational investments – rarely sold and typically held for more than 30 years," Mr Willis said.
Three records
Last week Coles sold its Pacific Pines supermarket in Queensland through Savills' Peter Tyson for more than $30 million on a yield of 4.63 per cent, setting three records including the largest commercial property ever auctioned in the state, the largest price for a freestanding supermarket in Queensland and a record yield for a freestanding supermarket in the state.
A strata titled Coles at Five Dock in Sydney also sold earlier this year for $19.66 million through Colliers International's James Wilson and Alexander Elliott, reflecting a record net yield of 4.89 per cent.The latest offering from Coles includes the 4575sq m Bowral Coles leased on a 15-year term and the 4751sq m centre Coles-anchored Westmead Shopping Village in Western Sydney.
CBRE is also bringing a $70 million portfolio of blue-chip Victorian retail assets and childcare centres to auction on August 31.
The portfolio includes the national head office and flagship liquor store for Dan Murphy's in Alphington, and a freestanding Coles supermarket in Warrnambool CBD and four metropolitan Melbourne childcare centres with 20-year leases.
"Given there has been only one commercial property portfolio auction process for Victorian vendors for such a long time, we saw the opportunity was ripe to create a premium version which focuses on selling 'A-Grade' properties only," said CBRE national director Mark Wizel.
