Investors Snap Up $55m Worth of Woolworths

Strong investor demand for quality retail assets are generating strong market interest from local and offshore investors.

Three Woolworths-anchored retail outlets were snapped up across the country over the last week as investors attracted to shopping centre sites with heavyweight supermarket tenants reflect a solid trading history and offer strong investment fundamentals.

Two Woolworths shopping centres in Victoria went under the hammer last week.

The 42-50 Burwood East supermarket sold for $18.17 million on a 4.57 per cent yield, and the Scoresby supermarket at 1385 Ferntree Gully Road sold for $15.12 million on a 4.54 per cent yield.

The Woolworths-anchored Kallangur Fair Shopping Centre, located 24 kilometres north of Brisbane CBD, was acquired by an offshore investor for a premium $21.38 million.

Refurbished in 2017, the Queensland site provided a WALE of eight years.

The deal was brokered by Savills’ Peter Tyson and Jon Tyson after an expressions of interest process of the Charter Hall Retail REIT offering.

Tyson said the sales result of the Anzac Avenue 15,800sq m site wasn't a surprise but in line with expectations.

“The sale process generated multiple offers from local and offshore buyer groups, including private investors, syndicators and fund managers,” Tyson said.

Related: Burwood Mall Tipped to Fetch $200 Million

Eagleby assets sell on tight yields

Along with the two Victorian supermarket sales, CBRE cleared all 515 properties at its recent premium property portfolio auction.

Two notable Queensland offerings include the sale of a KFC store for $3.72 million on a 4.47 per cent yield to a Western Australian investor.

A nearby Caltex Service Station sold for $12.05 million on a 5.72 per cent yield to a Melbourne investor.

Both assets are located on River Hills Road Eagleby in Logan, roughly 33 kilometres from Brisbane CBD.

CBRE project head Joseph Du Rieu said the 100 per cent clearance rate was indicative of strategically positioned properties.

“It is clear that the local and Asian investor market are continuing their flight to quality and secure investment properties.”