Woolworths sells Keysborough South Shopping Centre for $33.13 million

14 April 2020

Woolworths has sold their recently developed centre in Keysborough South to a local investor for $33.13m.


The Centre, located on a 18,440sqm site at the corner of Chapel and Hutton roads, provides 5,437sqm of NLA, comprising a 4,201sqm Woolworths supermarket, 8 specialty retailers and 277 car spaces.


Woolworths provided a new 10 year lease to the purchaser with a base rent of $1.4m. Overall, the Centre generates an annual net rent of approx $1.79 million, providing the purchaser, a 5.4% passing yield.


The property was sold via CBRE who reported that the sale reflected the strong demand for supermarket-based properties with 11 offers recorded and several contracts signed in the final round.


The Centre was one of four retail investment assets put up for sale by Woolworths. The other assets included Woolworths Wadalba, located between Newcastle and Gosford on the NSW Central Coast, which was sold by Colliers International for $26.15 million on a 5.69% yield.


Woolworths are yet to announce the sale of the Spring Farm Shopping Centre near Campbelltown, or the Bakewell Shopping Centre in the Northern Territory. The Spring Farm asset includes a Woolworths, BWS and 10 specialty shops, while the The Bakewell Shopping Centre includes a 4800sq m Woolworths and BWS liquor store, 12 specialty retailers and a 287-space car park.