ALDI Supermarket, 542 Main Street, Mordialloc, VIC 3195
An ALDI in bayside Mordialloc has kicked off the first supermarket sale for 2022, with Stonebridge Property Group’s Justin Dowers, Kevin Tong and Rorey James exclusively handling the transaction on behalf of ALDI.
Mordialloc was the first supermarket in Victoria to be offered up for sale by ALDI Stores themselves, selling with a 10-year leaseback in place with additional options.
Located at the ground floor of the St Lucia Apartment complex, the 1,500sqm supermarket (total 3,450sqm site area) was constructed in 2011 and includes 65 basement car spaces on title.
According to Stonebridge partner, Justin Dowers, ALDI picked the perfect time to divest.
“Metropolitan supermarkets are extremely rare at present and the fundamentals have never been better. ALDI Mordialloc ticked a lot of boxes for investors, which was reflected in the amount of enquiry and offers received throughout our sale campaign.”
Buyers from Tasmania, Sydney, Perth and Melbourne together with several overseas groups competed for the asset, attracted to the long-term lease, tenant profile and non-discretionary income, said Mr Dowers.
Kevin Tong’s, head of Stonebridge’s Asia Practice arm, commented that there was a “sheer weight of aggressive capital continuing to seek leased passive investments, regardless of asset class.” Adding that there were traditional childcare and service station investors among those participating in the ALDI Mordialloc process.
The only other stratum ALDI supermarket to sell in Victoria this year was the ALDI in Fitzroy which sold a few months earlier for close to $14 million on a yield of circa 4.5%. Stonebridge also marketed a stratum Woolworths Metro in Ascot Vale last year which sold for $19,150,000 to an international Chinese investor on a yield 4.65%.
Further to this Stonebridge has recently been appointed to offer to the market the freestanding Coles Supermarket in Lalor. Located at 47-71 May Road the supermarket is spread over 3,365sqm of Commercial 1 Zoned land, with direct frontage to the main retail strip.
Coles have been present at this location for over 30 years and have recently signed a new 10-year Net Lease, returning circa $415,000 per annum.
Mr Dowers said that “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.”
Further more 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.
“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)”.
“Whilst the supermarket provides a highly secure income stream, the opportunity at Coles Lalor is underpinned by a prime Commercial 1 Zoned landholding which provides the incoming purchaser with long term upside.”