A brand-new ALDI supermarket in West Melbourne has changed hands for $14.415 million, purchased by MPG Funds Management on a yield of 5.47% in a deal negotiated by Colliers’ Tim McIntosh and Stonebridge’s Justin Dowers, Rorey James and Kevin Tong.
The ALDI supermarket occupies the ground floor of a residential development by Lechte Corporation, CDL Australia and Crema Group, known as The Marker, just 800 metres from the Melbourne CBD.
Colliers director of retail middle markets, Tim McIntosh said, “Supermarket investments remain at the top of retail investors’ wish list, motivated by inflation-led superior returns and high conviction in tenant longevity beyond initial terms.
“While the first half of 2023 was characterised by scarce supply and only one Victorian supermarket sale being Woolworths Kerang, we have seen a spike in supermarket sales activity across metropolitan Melbourne and Victoria with five supermarkets trading during the second half of this year as buyer confidence returns.”
Brett Gorman of MPG Funds Management said, “Despite some interest rate uncertainty, MPG will continue to seek to purchase quality properties with strong fundamentals such as this ALDI West Melbourne. The property further bolsters our fund and will provide attractive CPI growth with long-term security with ALDI as the tenant.”
Stonebridge national partner, Justin Dowers added, “The supermarket sector is demonstrating strong resilience through multiple interest rate rises as transaction activity remains robust. This continued strength reflects the sector’s appeal as a defensive asset class which will capitalise on record population growth in Australia.”