Coles Varsity Lakes shopping centre changes hands in $37 million off-market sale

A high-net-worth Victorian investor has acquired Coles Varsity Lakes for more than $37 million in an exclusive direct sale with the price reflecting a sharp yield of 4.75%, demonstrating continued success in today’s investment market.

CBRE’s Joe Tynan and Michael Hedger exclusively negotiated the off-market sale prior to practical completion.

The purchaser was introduced to the opportunity through CBRE, with the team having worked closely with the buyer following a recent sale process of another property and understanding their mandate to deploy capital into the right high-quality asset.

Mr Hedger said the transaction demonstrates the depth of genuine capital engaged with the CBRE team and ongoing strength of the retail asset class.

“This result is particularly noteworthy given the asset’s price point, with investor demand for secure income streams proving resilient even as deal sizes increase,” Mr Hedger added.

“CBRE’s market reach in the retail investment sector is genuinely unmatched and our team has led a notable share of the recent retail campaigns across South East Queensland in 2025 and 2026. This gives the team unique visibility and direct, real‑time access to every capable buyer active in the market. This sale is a clear illustration of the strength of those relationships and our ability to activate genuine purchasers even outside a formal campaign environment,” Mr Hedger said.

Located at 1 Bellvue Drive, Varsity Lakes, the 3,592sqm centre is anchored by a full‑line 3,382sqm Coles supermarket on a new 10‑year lease, with options extending to 2075.

The result further reinforces strong investor demand for defensive, freestanding supermarket assets, a trend CBRE expects to continue across upcoming campaigns nationally.

Mr Tynan said CBRE is preparing to launch a further pipeline of similar assets, supported by sustained buyer engagement across the sector.

“The strength of demand we’ve seen through the Coles Varsity Lakes transaction is directly reflective of broader investor sentiment toward freestanding supermarket assets.

“We have recently launched four additional freestanding supermarket assets to market, comprising one in Queensland, two in New South Wales and one in Western Australia, and based on current buyer engagement, we are anticipating strong interest for these properties,” Mr Tynan said.

“This remains one of the most sought-after sectors of the investment market, underpinned by non-discretionary income, long-dated leases and strong tenant covenants.

“In a period of elevated economic uncertainty, higher inflation and materially constrained new supply, investors continue to prioritise assets that offer income security and long-term resilience. Importantly, we are not seeing any slowdown in appetite for high-quality freestanding supermarket investments,” Mr Tynan added.