Dominant Coles Vermont South Listed For Sale

Stonebridge Property Group have been exclusively appointed to offer for sale Coles Vermont South, a powerhouse full-line supermarket in Melbourneโ€™s inner south-east suburb of Vermont South.

The Coles supermarket which has traded out of Vermont South Shopping Centre for over 40 years has recently undergone significant refurbishment works by Coles in August 2022. The Supermarket is a top-performer, consistently trading in excess of the percentage rent threshold providing excellent income growth prospects.

The property is strategically positioned on a substantial 3.9 ha commercial 1 zoned parent land holding with frontage to Burwood Highway (passed by 57,000 vehicles daily). The strong location fundamentals create the opportunity for an astute purchaser to acquire the remaining lots and potentially redevelop the site into a significant mixed-use development (STCA).

The supermarket is being offered for sale via a public expressions of interest campaign through Justin Dowers and Kevin Tong from the Stonebridge Property Group Team.

Stonebridge National Partner Justin Dowers said โ€œColes Vermont South performs exceptionally well due to its commanding location and convenience. This has recently been further enhanced by a major store refurbishment undertaken by Coles.โ€

โ€œBased on the storeโ€™s outstanding performance, the supermarket is substantially under rented which can create a value event in the futureโ€

โ€œWith the supermarket already trading in percentage rent, we anticipate there will be substantial trading performance growth and subsequent rental growth following the recent store refurbishment.โ€

Coles Vermont South is secured by a long lease to 2029 plus a rare 10-year option period and is easily accessible via the 756 at-grade common area car spaces on site.

Stonebridge Asia Practice Partner Kevin Tong added โ€œColes Vermont South is in the heart of Melbourneโ€™s inner southeast, which is heavily influenced by residents of Asian heritage. Based on our experience in transacting similar assets including Woolworths Burwood East and Burwood One Shopping Centre we anticipate strong bidding from the Asian investor profile.โ€

โ€œBuyers will be attracted to the strong performance of the Coles supermarket, as on most occasions on site the car park is quite full. However, over the long term there may be an opportunity to consolidate the site and ultimately control 3.8ha with significant development potentialโ€

Recent Metropolitan Melbourne Supermarket Transactions

  Property NameLettable Area (sqm)  Sale Date  Sale Price$/sqm GLAR  Yield
Woolworths Hawthorn (strata)1,827Jul-22$12,850,000$7,0333.30%
Coles Lalor2,783Apr-22$13,768,888$4,9472.98%
Woolworths Eltham3,744Mar-22$35,000,000$9,3483.33%
Woolworths Balwyn2,848Nov-21$45,700,000$16,0462.99%
Coles Local Glenferrie1,450Nov-21$24,500,000$16,8971.90%
Woolworths Blackburn South3,495Oct-21$29,300,000$8,3832.47%

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