Perth Commercial Sector Ticking Along

Western Australia’s first full-service supermarket to hit the market in more than 10 years has been snapped up by an east coast investor for $31.95 million.

The Coles supermarket and First Choice Liquor store was sold by Coles Group Property Developments, the property development arm of the retailer on a 5.3 per cent yield.

The Coles Riverton property, located about 10 kilometres’ south-east of Perth’s CBD, attracted 290 enquiries, according to its selling agents Savills.

Savills said the listing received 14 offers from Australian and offshore investors but an un-named interstate buyer ‘sealed the deal with a quick exchange.’

The news come just a day after The Urban Developer reported on the sale of a Victorian Coles supermarket in the suburb of Clayton on a record 2.57% yield. The Coles went to a local private investor for more than $17 million.

US retail giant moves in twos

In a vote of confidence in Perth’s economy, US retail heavyweight Costco has already announced the development of a second Perth-based store.

Costco’s managing director Patrick Noone said he hopes to have two Perth locations trading by the end of 2019.

Related reading: Costco to Build $77m Western Sydney HQ

News of the second store comes after last month’s announcement of the first $55 million project, with Perth airport and Costco joining forces to build the first Costco warehouse in the airport precinct.

Construction of the 14,000sq m building at the airport site is expected for early 2019.