For the first time in 24 years, Woolworths is putting one of its Sydney metropolitan supermarkets up for sale.
Woolworths Campsie has an approximate gross lettable area of 3,646 square metres. The property is occupied by a Woolworths supermarket as well as three specialty stores and includes onsite parking for 120 cars.
CBRE’s Steven Lerche and Sashi Makkapati in conjunction with Philip Gartland and Hamish Cameron of Stonebridge Property Group have been appointed to lead the sale for a closing date of Thursday June 7, 2012 at 4pm.
The Campsie property offers a net lease to Woolworths with two, 10 year options. The Woolworths supermarket is trading well above the national average on a sale per square metre basis.
Lerche said rarely did the opportunity to secure a Woolworths supermarket in a Metropolitan Sydney suburb become available.
“The offering is expected to be keenly sought after due to the strong trading performance of the asset and the net lease structure,” Lerche said.
Woolworths Campsie also provides the opportunity to refurbish or expand the existing supermarket in the short to medium term as well as the potential for a mixed use development in the longer term, subject to council approvals.
Gartland said recent sales of a number of single tenanted Woolworths and Coles supermarket and liquor stores had attracted strong private investor interest due to their typically strong locations, strength of covenant and ease of management.
“At the end of 2011, the Woolworths in Neutral Bay, Sydney sold for circa 5 per cent yield ($38m) due to its location and redevelopment potential. Similarly, a newly refurbished Woolworths store in St Albans, Melbourne sold for 5.75 per cent yield ($7.24million).
More recently regional freestanding assets such as the Coles at Umina and Dan Murphy’s stores in Coffs Harbour and Port Macquarie have all traded at sub 7 per cent yields prior to auction,” Gartland said.