Coles Lalor transacts for a sharp 2.98% yield
22 Pryor Street and 23 Arthur Street, Eltham, VIC 3095


Coles Lalor represents the second major supermarket sales campaign in Victoria for 2022, with the first, a Woolworths in Eltham, also handled by Stonebridge Property Group.

The 2,783sqm freestanding supermarket sold for $13,768,888, which represented a sharp 2.98% yield. Stonebridge Property Group agents Justin Dowers, Kevin Tong and Rorey James acted as agents on behalf of a private family that have owned the asset for over 30 years. The property was sold to a Melbourne based private investor with Asian heritage. The sale represents a benchmark yield for freestanding supermarkets nationally.

Justin Dowers said, “The sale of Coles Lalor shows again that investors are seeing more value to freestanding supermarkets than just a pure income investment. Metropolitan Melbourne freestanding supermarkets sit on some of the most strategic and valuable land parcels in Melbourne, which is a factor that we are now seeing consistently priced in.”

Located on May Road, the supermarket was a commercial 1 zoned site spread 3,365sqm. The freestanding 2,783sqm building includes a Liquorland and is leased on a 10 year term (expiring 2028) with a passing net income of $413,000, plus 4 x 5 year options.

“Since the opening of international borders in February 2022, the demand from Asian investors (especially for blue chip investments) has continued to grow with demand not only coming from China, but other parts of Asia including Hong Kong, Singapore, and Vietnam. The eventual purchaser was a group of Private investors with capitals sources coming out of Vietnam, who was attracted to the long-term income security of Coles and the upside potential – Added Asia Practice Partner Kevin Tong

Mr. Tong added “Private investors made up all 11 of the 11 offers on the property, however the most aggressive buyers that were identified when the bids were received, represented high net worth individuals that were not necessarily common industry players. These buyers were individuals that had ongoing business interests outside of property and an increased appetite to shift a growing wealth pool (due to business profits) into a secure investment like Coles Lalor.”

Rorey James added “Over 66 groups requested the due diligence information which further emphasises the depth in the market from buyers looking for securely leased blue chip investments, especially those with land and future upside.”

Summarised below are Victorian supermarket transactions over the last 6 months:

Sale Date
Sale Price
$/sqm GLA
Passing Yield
Woolworths Eltham
Woolworths Balwyn
Coles Bairnsdale
Coles Local Glenferrie
Woolworths Blackburn South

Latest News

View All News
March 10, 2021

9 Mornington shops to go under the hammer on behalf of Mortgagee

December 10, 2021

6 Developers and Owner Occupiers Fight for Cremorne Control Leading to 34-36 Cremorne Street Selling Under the Hammer for $5.15m

October 09, 2021

50 years in the making – sale of major St Kilda site