A trophy, freestanding ALDI supermarket in the exclusive NSW Southern Highlands has sold for $12,350,000, reflecting a sharp 5.09% yield.
The sale was brokered by Stonebridge’s Michael Collins, Kevin Tong and Alex James-Elliott and is evidence of ongoing demand for premium freestanding retail investments. The competitive national marketing campaign recorded over 190 enquiries and 14 offers at the close of the campaign from a range of domestic and offshore investors.
The property, located at 6 Robertson Road, Moss Vale, is underpinned by a 15 year lease through to 2034 to global supermarket chain. ALDI, and receives exposure to over 15,375+ vehicles daily, courtesy of 99 metres of dual street frontage to major arterials, the Illawarra Highway and Moss Vale Road. The asset hosts strong underlying land value, featuring MU1 Mixed Use Zoning across the substantial 6,093 sqm site, with modern improvements newly built in 2019 providing the incoming purchaser significant depreciation benefits. The investment delivers a net income of $628,252 pa* + GST, with annual rent increases linked to CPI capped at 4%.
Commenting on the sale, Stonebridge Partner, Michael Collins noted “High net worth private groups continue to follow ‘household name’ brands and secure tenant covenants, irrespective of location and are happy to ‘play’ in strong regional economies, hubs and tourist hot spots. This is demonstrated by the fact 14 formal offers were received after a competitive campaign which yielded almost 200 enquiries”.
Kevin Tong, Stonebridge’s Asia Practice Partner said “In the face of well-publicised economic headwinds, the circa 5% yield achieved is testament to the resilience of premium commercial property assets, driven by the scarcity of blue chip offerings available for sale and represents an effective hedge against inflation.”
ALDI Moss Vale is the latest in a long line of retail campaigns completed by Stonebridge Property Group. The team have transacted over $130 million of freestanding investment assets during the last 6 weeks leased to blue chip tenants, achieving yields as low as 2.64%.