Colliers presents a 100% leased IGA, offering secure income and future growth in Melbourne’s booming inner north.
A rare opportunity to secure a 100% leased supermarket investment in Melbourne’s inner north has come to market, with Colliers exclusively appointed to sell IGA Coburg, a strata-titled supermarket located just 8km from the CBD.
Positioned at 12–20 Nicholson Street, Coburg, the asset is fully leased to IGA, a subsidiary of ASX-listed Metcash (ASX: MTS), one of Australia’s leading wholesale and retail distribution companies. The supermarket occupies the ground floor of the award-winning mixed-use development ‘The Nicholson’, which includes 199 residential apartments and several specialty retail tenancies.
The 1,183 sqm supermarket benefits from a high-quality fit-out, rear loading access, and a prominent 20-metre frontage to Nicholson Street, a major arterial road with over 22,000 vehicles passing daily. The lease to IGA runs until 2027, with three further six-year options, generating a current annual income of $431,480.
Will Heffernan, Colliers Executive, VIC | Retail Middle Markets, said, “Supermarkets remain one of the most sought-after retail sub-sectors in Victoria, underpinned by essential-service tenants and long leases. It’s part of a broader trend of declining supply in the sector, with new supermarket development forecast to fall by nearly 30% over the next six years. This structural undersupply, combined with high retention rates and limited new stock, continues to drive strong competition for assets like IGA Coburg.”
The surrounding area is undergoing a wave of urban renewal, with more than 600 build-to-rent and build-to-sell apartments planned within 2.5km of the site. Major projects include a 274-apartment development by Development Victoria and a $147 million build-to-rent-to-own project by Assemble, AustralianSuper and HESTA, all within close proximity to IGA Coburg.
Coburg is a designated Activity Centre under the Victorian Government’s housing strategy, earmarked to accommodate thousands of new homes by 2051. This location offers both immediate income and long-term growth potential.
The Expressions of Interest campaign for IGA Coburg is being managed by Colliers agents Will Heffernan, Tim McIntosh, Travis Keenan and Yvonne Zhou, and will close at 2.00 p.m. (AEST) on 18 June 2025.
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