Two Woolworths-anchored supermarkets have sold on sharp yields of 4.4 per cent and 3.5 per cent respectively.
For the third time in two years, Woolworths Hadfield in Melbourne's northern suburbs has changed hands.
The freestanding supermarket, located on a 5,600sq m site 13km north of Melbourne's CBD, has sold for $11.75 million on a 3.5 per cent yield.
The 2,100sq m supermarket, which includes a BWS bottle shop, returns around $400,000 a year in rent.
The site was initially purchased in 2016 by St Albans-based plumber Bill Zahra for $9.75 million.
CBRE’s Mark Wizel said the transaction highlighted the shift in investment focus to income producing assets.
“As the market for retail investment properties continues to evolve, our team has made a deliberate decision to focus on strategically positioning properties and pairing qualified investments with suitable assets,” said Wizel.
Related reading: Geelong Retail Centre Sells for $36m in Active Market
Singaporean Family Banks $41m from Mordialloc Plaza
After 30 years of ownership, the Singaporean-based Chen family has banked $41 million with the sale of Mordialloc Plaza at 600 Main Street, in Melbourne's south-east.
The 4,532sq m mall, anchored by a Woolworths supermarket alongside 11 speciality shops, brings in an annual net income of $1.8 million.
The deal, representing a yield of 4.4 per cent, was brokered by CBRE's retail investments team of Mark Wizel, Justin Dowers, Lewis Tong, and Kevin Tong in conjunction with Ken Smirk from Knight Frank.
A third Woolworths-anchored mall in Geelong changed hands for $36.5 million last week, adding to the wave of regional shopping centre transactions this year.
Agents have cited increasing competition from local investors and funds looking to secure the highly-prized supermarket asset as reasons for the increase in sales.
Other recent transactions include The Village Bacchus Marsh for $61.65 million, Maroondah Village for $18.8 million and the $43 million sale of Stockland's Highlands centre last month.
