The Coles anchored Coburg North Village has sold for a $9m premium after being held for just 2.5 years, trading at $47m to Isaac Solomon on a yield of 4.7%.
The Neighbourhood Convenience Centre opened in August 2015 with a full-line Coles Supermarket and Liquorland of 4175sq m. The centre is also home to 15 convenience-based specialty retailers, including a medical centre and pharmacy.
The centre is highly accessible with 3 street frontage and ample on grade parking allowing the Coles supermarket to push sales into turnover rent territory, pushing the property income above $2.2m.
The former Bunnings store was acquired by Coles in 2010 for $6.3m. Coles transformed the buildings in the Centre spending another $15m on the development.
In 2016, Raymond Joe acquired the centre off Coles for $38m, and has now flipped it to Isaac Solomon.
The Coburg sale adds to a string of highly sought after Neighbourhood Centre sales over the past few months. According to ReSourcedata, there have been over 14 Neighbourhood Centre sales over the past 6 months, worth $440m. These sale demonstrates the strength of the market for non-discretionary based neighbourhood convenience centres.
The sale was managed by CBRE.
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