Coles Clayton Vic sells for a record 2.57% yield

The first Victorian supermarket offered for sale in 2018 has sold for a record yield of 2.57%. The freestanding Coles at 1389 Centre Rd, Clayton Vic was sold for $17.11M to a group of local investors controlled by fresh produce sellers the Surace family. The property consists of a 2,882 sqm site with net income of $0.4M and is the largest commercial site in the area. The site was purchased as a land bank and the low yield is seen as a reflection of the high demand for well located sites with strong long term tenants combined with future redevelopment potential. The Surace family operate a Surace Fresh store a few doors down from the Coles as well as another store in Prahran, Vic. The previous record yield for a retail site was the Woolowrths Middle Brighton which sold in July 2016 on a 3.8% yield.

Sydney’s apartment market continues to make headlines with the Meriton operation acquiring a new $80M Council Depot site in inner-city Zetland. The 1.06 ha site at 94-102 Epsom Rd, Zetland NSW offers development opportunity for a 12-storey building with around 300 apartments. The site adjoins the $13B Green Square renewal project, which has been driven by Mirvac (ASX: MGR). Meriton is optimistic about the area, after last year’s purchase of the City Ford-Sydney City Mitsubishi site in Elizabeth Street for around $90M.