NSW investor outbids offshore interest to set a record yield for Coles Five Dock

Coles-anchored supermarket at 4-12 Garfield Street Five Dock sells on 4.89% yield.

Colliers International’s James Wilson and Alexander Elliott, have set the record for a New South Wales supermarket and a national strata titled supermarket with the sale of Coles Five Dock for $19,660,000, representing a yield of 4.89%.

“As the first full-line Sydney metropolitan supermarket brought to market since 2015, we were inundated with established and emerging domestic and offshore investors” said James Wilson, Director, NSW Retail Investment Services at Colliers International.

“The yield achieved at Five Dock easily surpassed the previous NSW record which was set by the sale of a freehold Woolworths supermarket at Casula in 2015 on a yield of 5.11% and also set a new national record for a strata titled supermarket.

“The transaction of this strata supermarket, highlights the maturity of Sydney’s investment market to focus more on the underlying performance of the asset as opposed to its title. This is a positive sign for the maturing Sydney retail investment market and great news for mixed use developers looking to maximise their returns on Sydney developments.”

Coles Five Dock

The modern 3,333sqm stratum supermarket features a restaurant and secure basement parking for 163 vehicles and is part of a mixed-use development in the affluent suburb of Five Dock, less than 10 km from the Sydney CBD.

“During the campaign we experienced unprecedented levels of interest which carried through to the highly competitive bidding process,” Alexander Elliott, Executive, NSW Retail Investment Services at Colliers International said.

“With over 200 enquiries, the large number of unsuccessful bidding parties, not just enquiry, is testament to the demand from high net worth individuals seeking secure retail assets for personal investment”.

“We expect the result achieved here to only swell investor appetite for Sydney strata retail, particularly in high-quality, mixed -use developments.”

The total GLA for the property is 3,430sqm with a net income (fully leased) of approximately $960,489 p.a.

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