Coles to divest $50m worth of supermarket assets in WA's south west
Coles to divest $50m worth of supermarket assets in WA’s south west
| 25 September 2018
Three exceptional Coles retail assets, representing a $50m investment opportunity in the state’s rapidly growing south-west region are being offered for sale by CBRE.
The properties, offered for sale in-one-line or individually, include two freestanding supermarkets – Coles Orana, Albany and Coles Vasse, Vasse, along with the Coles Express Vasse petrol station.
The supermarkets, both recently built, are being offered with brand new 15-year leases to Coles, with a net lease structure providing security and no income erosion. Coles Express Vasse is being offered with a 10-year lease.
Mr Cash said the strong tenant covenant and location of the assets would underpin buyer interest.
“With the south-west being WA’s fastest growing region and among Australia’s top five over the past 10 years, the opportunity to acquire a substantial retail footprint in the area backed by a major national retailer, will be strongly sought after,” Mr Cash said.
Both located in WA’s south-west, Vasse and Albany offer distinct and prosperous trade areas; Albany being the agricultural and historical hub of WA and Vasse offering a new master planned estate at the gateway to the Margaret River wine region.
“These properties are ideally positioned to benefit from not only the high level of traffic through the state’s number one tourism region, but the infrastructure investment currently underway. Projects that will have a positive flow-on effect to retail trade in the region include the $70 million Busselton/Margaret River Airport Redevelopment, which will make way for domestic and international flights by 2019.”
“Additional public infrastructure investment of approximately $30 million into the Albany Waves Project and upgrades to Albany Highway will continue to grow and expand the Albany region.”
Located in Albany, Coles Orana is a full-line supermarket spanning 4,226sqm and including a Liquorland store. Prominently positioned on Albany Highway, with exposure to over 20,000 vehicles daily, the property is underpinned by a 2.9ha landholding and offers future development potential with DA approval for 658sqm of specialty retail.
Coles Vasse, situated at the gateway to the south west tourist region, is a 3,754sqm supermarket strategically located at the Margaret River/Dunsborough turnoff intersection. It includes a 200sqm Liquorland and at grade parking for 185 vehicles. Neighbouring Coles Vasse is Coles Express Vasse – a brand new, modern petrol station site with a 142sqm convenience store on a 2,111sqm site.
CBRE’s Mr Del Borrello said the sale campaign would ignite strong buyer interest from a range of groups.
“With the WA economy rebounding quicker than anticipated, now is the ideal time to buy into the market and we expect the increased investment interest in the state to continue. These market conditions, combined with the compelling investment fundamentals of these properties, are expected to ignite interest from local WA investors, national groups and offshore parties – particularly from Asia,” Mr Del Borrello said.
“Brand new freestanding supermarkets of this nature, with long-term leases, are considered generational investments – typically held for more than 30 years,” he added.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.