674 Glenferrie Road, Hawthorn VIC
Woolworths Metro Hawthorn represented the fourth supermarket sales campaign in Victoria for 2022 and the sharpest strata Woolworths metro sale in Victoria to date. The 1,827 sqm strata supermarket sold for $12,850,000 which represented a sharp 3.30% yield despite the limitations associated with the strata title. Stonebridge Property Group agents Justin Dowers, Kevin Tong and Julian White acted as agent on behalf of a private family that owned the asset for over 15 years.
Justin Dowers noted, “Strata supermarket investments remain very popular as they give investors the opportunity to acquire a Woolworths, Coles or ALDI covenant within inner metro locations at price points below $20 million”
“Strata supermarkets generally provide a low risk to investors because it’s harder for competition to enter into inner locations in major cities. Woolworths Metro Hawthorn transacted at such a sharp yield because it is just so difficult to replicate or replace in that location”
The Expressions of Interest campaign attracted strong interest and multiple bids from a wide buyer pool, given its prime location in Melbourne’s highly coveted inner-east suburb of Hawthorn. The sale bolsters the strength of recent supermarket transactions in Victoria as highlighted below:
“Traditionally supermarkets which have been offered in Melbourne’s east have been highly sought after by the Asian investor profile, and Woolworths Hawthorn was no exception.”
“The strong level of enquiry from Asian buyers was driven by their attraction to the location (which they are more familiar with) and the blue chip Woolworths covenant” added Kevin Tong.