Woolies supermarket buyers - the last four sales as Woolworths Middle Brighton sells on 3.77 percent yield
The Woolworths in Middle Brighton has sold for $32.08 million, billed as the highest price paid for a passive supermarket investment in Australia.
CBRE had over 280 enquiries for the supermarket, with around a third of the buying interest coming from offshore.
It went to a local private investor who will see a 3.77 percent yield from the investment which is leased by Woolworths until 2040.
The buyer, a prominent Melbourne family, beat off 15 other formal offers CBRE received.
Woolworths however do have the right of refusal to match the offer and acquire the property, which is outlined in their lease agreement.
"Woolworths has a leasehold interest in this site only and is not in a position to speak in relation to the sale process," a Woolworths spokesperson said.
CBRE's Justin Dowers, who negotiated the Woolworths sale with Mark Wizel and Kevin Tong, said there's a recipe for a highly secure retail market.
''When you couple [the] strongest population growth in the country (1.7 percent) and highest consumer sentiment levels (105.8), you have a recipe for a highly secure retail investment.
"More and more population will increase retail trade, leading to improved security for these retail leased investments," he added.
The recently refurbished 3307 sqm supermarket on Brighton's popular Church Street hadn't traded since 1985 when Sestons Pty Ltd, controlled by Laurence Teh, paid $3 million for the property.
It stands on a 4700 sqm site with 85 parking spaces on title.
The sale follows a string of Woolworths sales across Australia this year, the most recent the new site in Sydney's Potts Point which was snapped up by New Zealand investor Brain Cook.
The last four:
Potts Point - New South Wales
Auckland-based investor Brian Cook paid $16.3 million for the retail complex in Potts Point's new Omnia development. The 1,190 sqm space is pre-leased by Woolworths for the next 15 years.
Logan City - Queensland
This was a Woolworth's anchored shopping centre, which went for $38.25 million when bought by an Asian investor. The deal translated to a net yield of six percent. Woolworths, which brings in 55 percent of the centre's revenue, is joined by 13 retail tenancies.
Burnie - Tasmania
The recently refurbished 4000 sqm supermarket on 10,978 sqm sold for $18.1 million to a Melbourne investor. The site is leased by Woolowrths until 2031 with a 6.8 percent yield.
Bella Vista - New South Wales
This was in fact Woolworths HQ, which sold to a Korean investor for $336.45 million in January. The site is 100 percent leased to Woolworths until 2031 and represents a yield of 6.07 percent.
