Coburg North Village Sell Sub 5%

9 July 2019

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.