Stonebridge Property Group’s listing of the standalone Coles supermarket will test the market for a product that has been an investor favourite based on recession proof, non-discretionary and long leased blue chip tenants.

Located on May Road, right at the heart of Lalor, the commercial 1 zoned 3,365sqm with triple street frontage will attract interest of investors, especially those with an eye to the potential future redevelopment opportunities. The freestanding 2,783sqm building includes a Liquoland and is leased on a 10 year term with a passing net income of $413,000.

According to Stonebridge national partner Justin Dowers who is marketing the property with Kevin Tong and Rorey James, the supermarket not only provides an extremely secure income stream however given the low rental levels and underling land holding there is significant upside for the incoming purchaser.

“Coles Lalor is engrained within the community in the area being the main supermarket for over 30 years. It is complemented by an abundance on street parking directly facing the supermarket, in addition to a wealth of amenities including the train station which is only 600m away.” Added Mr. Dowers

Furthermore Coles Lalor provides a blue-chip tenancy covenant in a low interest rate environment, with a COVID-proof income stream, and a prime location within an established and growing catchment.

Kevin Tong added “In the current environment freestanding supermarkets are seen as one of the most secure opportunities, especially those with underlying landholdings. This is evidenced by the yields we have seen in recent months for supermarket assets in Melbourne’s established suburbs of Balwyn (3.00% Yield), Hawthorn (1.98% Yield) and Blackburn South (2.46% Yield)” .

Mr Tong said the property represented the most substantial and strategic commercial landholding in Lalor providing significant scope for future mixed-use redevelopment given the central location and proximity to the train station.

``We are not simply talking about a recession-proof income stream from a blue chip tenant, but a property which also offers exceptional development prospects down the track only 16km from the Melbourne CBD,’’ added Rorey James.

Mr. James also added ``Standalone supermarkets are rare and highly sought after by investors and have been over a long period of time and in many instances have produced very strong results. That has been due to some of the best investment credentials you will find in any commercial property asset including long leases, blue-chip tenants and high underlying land value.