The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Interested in a Corporate TUD+ Membership? Access premium content, site tours, event discounts and networking opportunities
Interested in a Corporate Membership? Access exclusive member benefits today
Enquire NowEnquire
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
1
print
Print
RetailTed TabetTue 14 Apr 20

Investor Confidence in Supermarket Assets Pick Up

17f59a71-66dd-41a0-9b13-7b805f298190

Supermarket giant Woolworths has continued the quick-draw sell-down from its retail property portfolio with the sale of two shopping centres in NSW and Victoria.

Both Woolworths and rival Coles have been in the process of divesting assets in recent years, offering them for purchase with long-term leases installed.

Earlier this year, the grocery retailer individually listed four properties across the country, all anchored by Woolworths supermarkets on long leases.

Woolworths, now widely considered one of the most defensive companies in the wake of the coronavirus crisis, has seen its popularity skyrocket over recent weeks due to panic buying.

Food spending has risen almost 50 per cent year-on-year, with sales in supermarkets and grocery stores lifting by 74 per cent.

A local Victorian investor has also picked up the newly-built Keysborough South Shopping Centre in Melbourne’s east for $33.13 million, anchored by a Woolworths supermarket and complemented by eight specialty shops. 

The single level, 5,437sq m centre is situated within the City of Greater Dandenong, where the residential population is expected to surge by 20 per cent within the next 10 years.

CBRE agents Justin Dowers, Mark Wizel and Kevin Tong managed the sale of the centre which holds a 10 year lease to Woolworths which draws a total net income is $1.79 million per annum.

▲ Wadalba Woolworths sold for $26.15 million.


Woolworths Wadalba, located on the NSW central coast, sold for $26.15 million on a 5.69 per cent yield to a high-net-worth Victorian investor.

The 3,905sq m centre, anchored by a Woolworths Supermarket and BWS, occupies a 1.55-hectare corner site on the Pacific Highway in Wadalba, less than 100km from the Sydney CBD.

Colliers International James Wilson and Alex James-Elliott handled the sale.

Non-discretionary retail property has become highly sought after by investors because of its limited exposure to online retailing.

According to JLL Research, neighbourhood centre investments were $1.3 billion in 2019 or 21 per cent of total retail transactions, nationally.

Across 2019, private investors and syndicates acquired 48 percent of neighbourhood centres, up from 34 percent in in 2018.

Woolworths is also selling the Spring Farm Shopping Centre near Campbelltown, about 60 kilometres south-west of Sydney and the Bakewell Shopping Centre in the inner suburbs of Palmerston North, about 25 kilometres south-east of Darwin.

The Spring Farm asset includes a Woolworths, BWS and 10 specialty shops, while the Bakewell centre includes a 4800sq m Woolworths and BWS liquor store, 12 specialty retailers and a 287-space car park.

The recent withdrawal of Kaufland from Australia, before opening its first store, will be a positive for both Woolworths and Coles moving forward.

Aldi is also looking to raise about $700 million through the sale and leaseback of a portfolio of its distribution centres across the country through JLL.

RetailAustraliaDeal
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
Fraser and Partners founder Callum Fraser
Exclusive

Saving Our CBDs: Architect’s Blueprint Paves Way for Office-to-Resi that Works

Leon Della Bosca
8 Min
Exclusive

Watchdog’s Court Loss Throws Spotlight on Union Balancing Act

Clare Burnett
6 Min
Time and Place's The Queensbridge Building at 90 Queens Bridge Street in Melbourne's Southbank.
Exclusive

Innovation Keeps Time & Place’s Southbank Skyscraper Rising

Marisa Wikramanayake
6 Min
Breathe Architecture founder Jeremy McLeod in front of his Featherweight Home design
Exclusive

Nightingale Founder’s Bid for Affordable Architectural Kit Homes

Leon Della Bosca
7 Min
View All >
Novus on Victoria Chatswood
Build-to-Rent

Novus Plots Second BtR Tower for Chatswood

Renee McKeown
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
Data, 3D tech and careful research are vital, but count for little without the courage to back it up, says James Maitlan…
LATEST
Novus on Victoria Chatswood
Build-to-Rent

Novus Plots Second BtR Tower for Chatswood

Renee McKeown
2 Min
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
3 Min
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
PBSA DA Hindmarsh Square student accomodation tower
Student Housing

Student-Friendly Adelaide Draws 35-Storey PBSA Proposal

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/investor-confidence-woolworths