Investor appetite for regional retail assets continues with the Woolworths Supermarket in Mount Isa selling for $16.91million.
The sale of the freestanding Woolworths supermarket was brokered by Peter Tyson and Jon Tyson of Savills on behalf of a private investor following a competitive on market Expressions of Interest process.
Savills’ National Director Peter Tyson commented “the sale process attracted multiple bids from across section of the market, including REIT’s and fund managers but was dominated by savvy private investors with the successful purchaser being a Melbourne based private investor group.”
“The market was attracted to the blue-chip ASX listed Woolworths covenant and the long term lease security of over 10 years plus options. Long leased freestanding supermarkets are a tightly held and thinly traded asset class which was evidenced by the sale of the property after 30 years of ownership by the Seller.” explained Peter Tyson.
Mr Tyson also commented “In a long-standing commitment, Woolworths have leased and operated the purpose-built store for around 40 years.
The building was extensively upgraded in recent years, including the introduction of an online pick up facility last year and is one of only two major supermarkets servicing the extensive Mount Isa catchment and region.”
The strongly trading 4,441 square metre standalone supermarket is situated in Mount Isa’s city centre with three street frontages on a 5,084 square metre site and features open and under-croft parking for around 80 cars.
Strong performing retail assets in regional locations remains popular amongst investors, with SCA Property Group also investing in Mount Isa, beating a field of 10 rival bidders to purchase the Coles and Kmart anchored Mount Isa Village sub-regional centre from ISPT for $44.2million in April 2021 in a deal also brokered by Savills.
Jon Tyson observed “Regardless of the post code, the fundamentals of core retail remain and are founded in “daily needs”. Convenience based retail centres underwritten by grocery, medical and other essential services continue proving their resilience in any market.”
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