Victorian private investors have acquired two regional Woolworths supermarkets, Woolworths Moree in New South Wales and Woolworths Mount Gambier in South Australia, for a combined total of over $40 million, reflecting a circa 5% yield. The transactions were handled exclusively by Stonebridge Property Group National Partners Justin Dowers and Philip Gartland.
The assets attracted significant investor interest due to their strong trading performance, essential-service tenant profile and long-term security of income. Both sales further illustrate the ongoing confidence in non-discretionary retail, which continues to outperform in a mixed economic environment.
Woolworths Moree, located approximately 630 km north-west of the Sydney CBD, comprises a freestanding full-line Woolworths supermarket. The asset was sold off-market to a Victorian private investor following targeted engagement from Stonebridge’s national investor network.
Woolworths Mount Gambier, positioned roughly 435 km south-east of the Adelaide CBD, includes a freestanding Woolworths supermarket accompanied by three specialty retail tenancies. The property was sold via a highly competitive on-market Expressions of Interest campaign, drawing multiple offers from local and interstate capital.
Philip Gartland, National Partner at Stonebridge commented:
“Stonebridge has now transacted four supermarket assets across Queensland, New South Wales and South Australia in the past six months alone, achieving an average yield of circa 5%. This sustained depth of demand underscores the strength of the supermarket investment market nationally. We are seeing elevated enquiry levels for supermarket- anchored retail, with the sector recording a clear uplift in activity and yield compression of approximately 27 bps compared with the previous year.”
Justin Dowers, National Partner at Stonebridge commented:
“Supermarkets remain the benchmark for safe-haven retail investment, and these two sales are consistent with that trend. In an environment where macroeconomic uncertainty continues to influence investor behaviour, we are seeing private capital gravitate toward ultra-secure, income-producing assets as a defensive strategy against volatility in other sectors. Victorian private investors, in particular, have long held an affinity for supermarket investments, and given how tightly held they are, many are now looking beyond their home state to secure opportunities.”
Despite their regional locations, both supermarkets transacted at circa 5% yields, reinforcing the strength and resilience of essential-service retail assets.
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