Woolworths Cootamundra located 6 hours from Sydney sells for sharp yield of 5.5%
Robust demand for defensive retail investments continues despite are restricted deal flow in the first half of 2025. Woolworths Cootamundra, a freestanding supermarket in New South Wales has transacted for $19.0 million at a yield of 5.5%.
Woolworths Cootamundra, sold by Sebastian Fahey and David Mahood from JLL Retail Investments NSW and was acquired off-market by a private purchaser.
Woolworths Cootamundra is a high-performing freestanding supermarket with limited competition anchored by a Woolworths supermarket in percentage rent, delivers a secure net income and a 5.4-year WALE and options extending to 2050.
Sebastian Fahey, Senior Executive Retail Investments NSW at JLL commented, “The consistent appeal of freestanding supermarkets continues to attract significant capital, driven by stable income streams and long-term capital growth potential. This demand is further heightened by rising construction, creating an all-time low forecast for available floor space. As a result, demand is outpacing the limited on-market supply. The off-market sale of Woolworths Cootamundra serves as clear evidence of this strong demand for defensive retail assets regardless of location considering Cootamundra is 6 hours from Sydney”.
Freestanding supermarkets rarely become available however, this sale marks JLL’s sixth freestanding supermarket investment sale across Australia in the last 12 months, totalling over $90 million in transactions. The sale follows JLL’s recent Coles Phillip Island $23.75 million transaction which attracted 17 formal bids and sold for a very strong yield of 4.62%.
Mr. Fahey added, “With the asset’s strategic location in a thriving agricultural hub and limited competition, Woolworths Cootamundra represents a generational investment opportunity in a tightly held market. Its exceptional trading performance and recent sustainability upgrades, underpins the supermarket’s long-term capital growth.”
First-half volumes for shopping centres in NSW totalled $305 million – a 10% decrease from 1H 2024. The retail sector’s resilience continues to make it a highly desirable asset class, despite overall transaction volume decline in NSW.
David Mahood, Senior Executive Retail Investments NSW at JLL commented, “Opportunities to acquire retail investments in New South Wales remain scarce, with nearly three quarters of supermarket investments transacting off-market in the last 18 months. Of the $1.23 billions of transactions that have occurred since the start of 2024, only $0.32 billion have transacted through an on-market sale process, fuelling investor demand as evidenced by the sale of Woolworths Cootamundra.”
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