A MIXED use Coles supermarket project in Sydney has entered the market and is expected to bring in more than $50 million, or one of the largest supermarket transactions recorded.
The mixed-use Coles Linfield redevelopment by Thirdi Group and Pheonix Property Investors, located on the corner of the Pacific Highway and 1 Balfour Street, will see the supermarket demolished updated and 60 residential units built.
Carl Molony and Justin Dowers, directors at Stonebridge Property Group have been appointed to manage the sale of the property, on behalf of the developers.
“As far as supermarket investments go, this is one of the most outstanding assets in Sydney, and indeed, Australia,” said Molony.
The DA approved site was sold by Coles Group to the developers in 2020, after over 50 years of trading on the site. With by Thirdi Group and Pheonix Property Investors looking to cash in on the current demand for convenience assets, with supermarket yields compressing over 100 basis points in the past 12 months.
Supermarket yields have been underpinned by strong retail transaction volumes, with data showing a 230% year-on-year increase and $854.2 million in shopping centre deals recorded over the three months the end of July.
Selling subject to completion, the property will include a new 15-year lease with Coles in a new store that will be roughly twice the size of the current 4,500sqm supermarket, with parking for 237 cars over two and high exposure to the Pacific Highway.
“The demand for quality convenience assets is at unprecedented levels and rarely do assets of this scale and quality become available,” said Dowers.
The development will also see a new Balfour Lane constructed, for added access, with a heritage building and electrical substation preserved. While the retail offering will also include a Liquorland and a new café.
“Coles Lindfield is a fortress investment – it occupies a dominant trading position, has strong income growth and depreciation potential,” added Dowers.
The expressions of interest campaign for Coles Lindfield is scheduled to close on November 9, 2021.
http://www.australianpropertyjournal.com.au/2021/10/10/lindfield-supermarket-set-to-smash-records/