AUSTRALIA | A Sydney-based high-net-worth private investor has acquired a Coles Operations Centre in the Melbourne suburb of Malvern for AUD 7.5 million, with the price reflecting a 3.8 percent yield.
CBRE’s Jamie Hess, Sam Guest, David Minty and James Douglas managed the sale under instructions from Mark Ruttner at First Valuation Group.
Hess noted the auction outcome highlighted the strength of the commercial property market and the enduring appeal of strategically located assets.
Hess said that the campaign drew considerable enquiry, with the result ultimately reinforcing investors’ appetite for long-term secured assets underpinned by blue-chip lease covenants in highly sought-after precincts
Located at 1 Edsall Street, the 777 sqm asset serves an integral role in the day-to-day operations of the bustling freestanding Coles Supermarket located next door.
The property is fully occupied by Coles Group with a lease expiry in 2031 with two further 10-year options available.
Guest noted the asset had undergone many changes over the past four decades, most recently transitioning from a fresh fruit and meat retailer and office above to its current use as the Coles Malvern operations centre.
“This is a generational asset that has been held by these private investors for over 40 years and has served various purposes for them. It was a privilege to be trusted with the sale of such a unique offering, and we are pleased to have achieved this result,” said Guest.
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