Supermarket giant Coles has sold ownership of one of its Sydney properties to a Melbourne investor for $23.85 million.
The store which generates an estimated net income of $1.395 million per year, will remain at West Ryde along with a Liquorland store under a single lease.
Sitting on almost 4,000 square metres, Coles West Ryde was offered under a 12-year net lease with options for the property investor to 2072.
Colliers International, who were facilitating the sale, closed expressions of interest in early December 2019.
It's understand the property was sold on a yield of 5.85 per cent.
"Coles West Ryde is a modern 3,985 square metre stratum titled supermarket comprising a full-line Coles supermarket and Liquorland store under a single lease," Colliers International said in marketing materials.
"The opportunity represents the first Sydney metropolitan freestanding supermarket investment opportunity to be marketed in 2019 with no speciality tenants."
West Ryde sits 15.4 kilometres from Sydney CBD and 8.7 kilometres from Parramatta CBD, and its retail centre provides what Colliers described as "a highly defensive" income stream.
"The Coles and Liquorland tenancies are secured by an industry leading 12-year net lease structure, with options to 2072," said Colliers International.
"The Centre provides a highly defensive income stream underpinned by non-discretionary retail sales."
Source: 9News https://www.9news.com.au/national/coles-west-ryde-supermarket-property-sold-but-supermarket-to-remain-at-central-square/12beb736-d264-42f3-95e7-03583d086d65