A metropolitan Melbourne supermarket in the inner-city suburb of Clifton Hill has sold on a low yield of sub 3.30% in a deal negotiated by Colliers’ Tim McIntosh, Matt Stagg and Yvonne Zhou.

The sale represents a recent string of freestanding supermarket sales across metropolitan Melbourne and Victoria, including Woolworths Kerang, Coles Hampton and Woolworths Monbulk, following limited supply of core retail investments coming to market.

Colliers director of retail middle markets Victoria, Tim McIntosh said, “The competitive bidding at auction from local, offshore and interstate private investors reflects the deep appreciation buyers continue to show for freestanding retail investments in prime metropolitan locations.”

The retail investment is 100% leased to Woolworths with attractive 3% fixed increases and options until 2056, occupying a prominent corner location on Queens Parade.

“Woolworths Metro Clifton Hill was sold post auction to a Sydney-based private investor, further highlighting the growing theme of buyer mandates increasingly being more fluid across the Eastern seaboard. Colliers continue to leverage our national Retail Middle Markets and Asia Markets platform to channel maximum buyer engagement,” McIntosh said.

Colliers national director of investment services, Matt Stagg added, “Inner Melbourne, retail high street investments, are continuing to achieve exceptional results, with the sale of Woolworths Metro Clifton Hill a week after the sale of ANZ Hampton East, achieving a sharp 4.50% yield.

“Strong investment opportunities, such as Woolworths Metro Clifton Hill, are rare, particularly in strategic metropolitan locations leased to a secure tenant. We continue to experience lots of interest from investors drawn to ultra-defensive and recession-proof investments with attractive income growth.”