First metro Woolworths supermarket investment of 2017 set to be sold by CBRE
First Woolworths supermarket investment of 2017 for sale
| 9 February 2017
Pace Development Group are set to sell the ground floor Woolworths Metro Supermarket, Brunswick, in what will be the first Woolworths supermarket investment opportunity of 2017.
The new 'Woolworths Metro' store, located at 808-818 Sydney Road, Brunswick, will service 86 residential apartments on the seven upper levels of the property. The supermarket, which will be sold off the plan, is currently under construction and estimated for completion in mid 2018.
CBRE’s Victorian Retail Investments team led by Mark Wizel, Justin Dowers and Joseph Du Rieu will be steering the sale of the supermarket on behalf of Pace.
Duane Vella, Commercial Development Manager at Pace said; “Given the 86 apartments that will be constructed above the supermarket are now sold out, we are confident investors will be eager to secure the retail component as a long term investment.”
Mr Vella said Pace has managed the project in partnership with Woolworths from design to completion which should appeal to the buyer market.
Mr Vella commented that the development continues to exhibit the strong belief Pace holds in the mixed use development market within urban Melbourne.
“We truly believe that developments within the Melbourne metropolitan market need to have a holistic approach to lifestyle; be that a tranquil outdoor garden, gymnasium, communal infinity pool, or supermarket, the amenity we provide to our residents is always front of mind throughout each stage of our project lifecycle. We have thoroughly enjoyed working with Woolworths in developing a well-rounded metro supermarket in Brunswick, and look forward to bringing further mixed use projects to Melbourne's inner fringe through 2017 and beyond.”
CBRE’S Mark Wizel explained; “The opportunity to purchase a single tenanted supermarket within 5.5 kilometres of the Melbourne CBD is a rare offering to the market and should generate significant interest.”
Mr Dowers said there is an increased demand for highly secure retail investment properties being sold off the plan. In the past 18 months the market has seen the sale of Woolworths Launceston, Woolworths North Caulfield and a Bunnings in Yarrawonga all off the plan.
“The pending sale of Woolworths Brunswick is the first metropolitan supermarket in Victoria to be offered to the market since Woolworths Middle Brighton was sold for a record yield of 3.77% by CBRE in June 2016.”
Mr Dowers said vying purchasers should recognise similarities between the investment profiles.
Woolworths Metro Brunswick is situated within the commercial precinct of Sydney Road, Brunswick. The area has seen recent growth in residential and commercial development activity which results from the continued gentrification of the inner northern fringe suburbs of Melbourne.
“Median house prices in Brunswick have increased over the past 5 years from $633,000 to $925,000 - an increase of over 46%.” Mr Dowers stated.
“Continued investment into the local area and growth in population will be key in underpinning the security of the investment in the long term.”
The property will be sold by way of International public expressions of interest, closing in late March 2017.
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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 2015 revenue). The company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 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.