After an extensive development delay, and a step in right, the Coles Property Group have sold their West Ryde store to Sommerset Property for $23.85m.
The supermarket sits within a separate stratum in a recently completed project in West Ryde, approximately 15.4 from Sydney CBD and 8.7 kilometres from Parramatta CBD.
The project was developed on land part owned by Council and developer, Remo (West Ryde) P/L and commenced in 2010 with construction of a basement and retail podium with 213 apartments due to be constructed above the supermarket.
Remo experienced delays in finalising the project, permitting Coles to step in to complete the project which they did in exercising their rights in December 2009, assuming all of Remo’s rights and obligations under the development. The project stood idle for several years and in 2014 Toga were appointed to complete the project on behalf of Coles.
Coles ultimately commenced operating in early 2015 with the apartments reaching completion in June 2015.
After a 4 year trading period, Coles elected to sell the 3,975 sqm supermarket with 300 car basement parking, offering to the market with a 12-year net lease and an annual rental of $1,395,000.
The purchase price represents a yield of 5.85%, which is on par with other examples of stand alone supermarkets sold recently, including Coles centre at Willowdale which sold for 5.6% in September 2019.
The sale campaign was managed by Colliers.
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