This article is from the Australian Property Journal archive
THE sale of a Woolworths Supermarket in Mount Isa for $16.91 million, proves that regional retail assets are still pulling in investors.
The 4,441sqm freestanding supermarket, located in Queensland’s Gulf Country, in the city centre of Mount Isa, boasts three street frontages and sits on a 5,084sqm site.
Peter Tyson and Jon Tyson from Savills managed the sale of the supermarket asset via a competitive expressions of interest campaign on behalf of a private investor.
“The sale process attracted multiple bids from across section of the market, including REIT’s and fund managers but was dominated by savvy private investors with the successful purchaser being a Melbourne based private investor group,” said Peter Tyson, national director of retail investments at Savills.
The asset’s blue-chip ASX listed Woolworths covenant, as well as the lease security with over 10 years plus options, drew investors to a competitive sale process.
“Long leased freestanding supermarkets are a tightly held and thinly traded asset class which was evidenced by the sale of the property after 30 years of ownership by the seller,” added Peter Tyson.
The purpose built store has been occupied and operated by Woolworths for about 40 years, with the site being upgraded in recent years, including the introduction of an online pick up facility in 2020.
The site also features both open and under-croft parking for around 80 cars and is one of only two major supermarkets servicing the expansive Mount Isa catchment.
Last week, SCA Property Group bought into a regional Woolworth’s anchored neighbourhood centre inToowoomba for $34.34 million. Negotiated by the same Savills team, the sale reflected a record breaking 5.39% yield in the neighbourhood asset class in regional Queensland.
“Regardless of the post code, the fundamentals of core retail remain and are founded in ‘daily needs’. Convenience based retail centres underwritten by grocery, medical and other essential services continue proving their resilience in any market,” concluded Jon Tyson.
