logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Australia
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Investment Management (CBRE Investment Management)
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Agribusiness
      • Build-to-Rent
      • Building, Depreciation & Cost Consultancy
      • Government Real Estate Advisory & Transactions
      • Hotels
      • Industrial & Logistics
      • Office
      • Residential
      • Retail
      • Retirement & Healthcare
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Debt and Structured Finance
      • Host
      • Institutional Investments
      • International Investments
      • Investment Accounting & Reporting Solutions
      • Structured Transactions & Advisory
      • Leasing & Advisory
      • Metropolitan Investments
      • Property Management
      • Property Sales
      • Recovery & Restructuring
      • Valuation & Advisory
    • Services for Occupiers
      • Facilities Management
      • Leasing & Advisory
      • Occupier Consulting
      • Portfolio Services
      • Project Management
      • Sale and Leaseback
      • Structured Transactions & Advisory
      • Transaction Management
      • Valuation & Advisory
      • Workplace
  • Properties
    • Agribusiness
      Hotels
      Industrial & Logistics
      Institutional Investments
      Metropolitan Investments
      Office
      Residential
      Retail
  • Research & Insight
    • Australia Research
      Asia Pacific Research
      Global Research
      Expert Opinions
      Talking Property Podcast
  • People & Offices
    • Pacific Executive Committee
  • About CBRE
    • [email protected] - LGBTQI+ Inclusion
      Careers
      Case Studies
      Client Tools
      Corporate Information
      Environmental, Social and Governance
      Investor Relations
      Media Centre
      Reconciliation
      The Place Makers

Previous

Press Release
Developers could score hat-trick with Woden offering

Next

Press Release
CBRE appoints new head of Sunshine Coast Asset Services
  • Home
  • About CBRE
  • Media Centre
  • Demand for regional supermarket investments heats up with runaway sale in Stawell

Demand for regional supermarket investments heats up with runaway sale in Stawell

Melbourne | 20 March 2017
  • Email
  • Share
  • Tweet
  • Share
Victoria’s retail investment market continues to strengthen, with the IGA Stawell - a freestanding supermarket in the regional town of Stawell – the latest in a series of assets to change hands. 

Located at 126-130 Main Street - the town’s major thoroughfare – the IGA Stawell comprises a total trading area of 1,622sqm and more than 100 onsite car parks. 

CBRE’s Victorian Retail Investments team negotiated the sale on behalf of vendor Alan Fisher for $5.11 million – reflecting an initial yield of 5.82%. 

The asset, which is anchored by a new 15-year lease to Ritchies SUPA IGA, attracted strong buyer interest, with eight offers received during the sale process. 

Selling agent Joseph Du Rieu, who brokered the sale in conjunction with Kevin Tong and Justin Dowers, said the strong result highlighted ongoing momentum in the retail investment market. 

“Although there have been well publicised concerns around the potential increased cost of debt in the coming months, this transaction highlights the strength of the current buyer market and is further evidence of investors taking a long term position on these supermarkets,” Mr Du Rieu said. 

“We were blown away by the response for this property from the 90 plus buyers who enquired, particularly given the location in a township where the permanent population is less than 10,000 people.” 

The township of Stawell is best known for the annual ‘Stawell Gift’ - Australia’s richest footrace, which is held annually each Easter long weekend.  

Mr Du Rieu went on to say that while single tenanted supermarket assets, anchored by either Coles or Woolworths remained strong, investors were also shifting their attention to properties with alternative tenants that may offer higher yields. 

“Given that yields of 5% have typically been reserved for supermarkets operated by Coles or Woolworths, we feel this is a very strong result and a sign of the current market environment,” Mr Du Rieu said. 

Further evidencing the strength of the retail investment market, a Chemist Warehouse leased strata shop has been sold to an off-shore investor in Craigieburn for $2.86 million – reflecting an initial yield of 5%. 

The Chemist Warehouse in Craigieburn forms part of the Central Park Shopping Centre and is one of six strata retail tenancies. 

The 275sqm property sold under the hammer following a highly competitive auction that attracted bids from eight separate parties. The transaction reflected a building rate of
$10,400/sqm - almost double the previous sale rate of $5,709/sqm in 2013.

Mr Dowers said properties in metropolitan locations with fixed income growth and lease tenure of five or more years were rarely offered to the market.

“We have seen a scarcity of stock in prime growth suburbs in recent times and this is fueling the willingness of investors to compete aggressively when properties are offered to the market,” Mr Dowers said.

“With yields for 10 year bonds beginning to rise, many of our vendors are recognising that the market conditions may not be getting any better and are looking to capitalise at the moment.” 

For Australian/international news or global stories, follow us on Twitter: @cbreaustralia

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 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.

Contact Us

$name
Natasha Pierson
Associate Director, Communications
Australia
+61 405 260 978
  • Corporate Information
  • Corporate Responsibility
  • Media Centre
  • About CBRE
  • Careers
  • Case Studies
  • People & Offices
  • Executive Committee
  • Investor Relations
  • Contact Us
  • Australia Privacy Policy
  • Global Web Privacy and Cookie Notice
  • Whistleblower Policy
  • Sitemap
  • Terms of Use
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • Youtube