7 Arthur St, Eltham VIC 3095
Woolworths Eltham represented the first major supermarket sales campaign in Victoria for 2022.
The 3,744sqm freestanding supermarket sold for $35,000,000, which represented a sharp 3.3% yield. Stonebridge Property Group agents Justin Dowers and Kevin Tong, in conjunction with Fitzroys David Bourke, Chris James and Shawn Luo acted as agent on behalf of a private family that have owned the asset for over 20 years. The property was sold to a Melbourne based private investor.
“The result of Woolworths Eltham at a 3.3% yield is the sale the market needed to reaffirm the underlying demand for this type of investment product. Given that we had 15 offers on the property and achieved a yield at this level would indicate that although buyers may be anticipating a higher interest rate environment, there is greater concern of holding cash when entering into a higher inflationary period.” – Stonebridge National Partner, Justin Dowers
“Eltham Woolworths was a high performing supermarket and it was proven that supermarket investments, especially those which trade above their percentage rent threshold, are one of the best investment products to provide a hedge against inflation.” – David Bourke
“30% of the bids received were from investors with Asian heritage and although they were not the eventual purchaser it further highlighted the demand from the Asian investor buyer pool for supermarket investments in Australia.” – Stonebridge Partner, Kevin Tong
“In the current environment freestanding supermarkets are seen as one of the most secure opportunities, especially those with underlying landholdings” – Shawn Luo.