Abbotsford Woolworths supermarket set to go under the hammer on behalf of Pace
Located on the edge of the Melbourne CBD, PACE Development Group are set to sell their ground floor Woolworths Supermarket in Abbotsford through CBRE’s Premium Property Portfolio Auction next month.
Currently under construction the PACE Abbotsford is a 133-apartment development, located directly across from Victoria Park Train Station and near the corner of Johnston Street and Hoddle Street. CBRE Victorian Retail Investments Justin Dowers, Rorey James, Kevin Tong & JJ Heng will be marketing the supermarket on behalf of the well renowned developers.
Woolworths Metro Abbotsford is situated within the commercial precinct of Johnston Street Abbotsford. The area has seen recent growth in residential and commercial development activity which results from the continued gentrification of the inner east fringe suburbs of Melbourne.
“Median house prices in Abbotsford have increased over the past 5 years from $757,000 to $1,140,000 – an increase of over 51%.” Mr Dowers stated.
“Continued investment into the local area and growth in population will be key in underpinning the security of the investment in the long term.”
“Opportunities to buy these smaller format Woolworths Supermarkets are as rare as hens’ teeth, those within 3km of the Melbourne CBD are even rarer!” Commented CBRE’s Rorey James.
Mr James added “With interest rates at all-time lows and predictions of further rate cuts, it is little surprise as to why buyers are chasing haven investments with national tenants on long leases. With respect to Woolworths Abbotsford, buyers will also benefit from very strong depreciation tax benefits, ensuring this is a wonderful long-term investment for buyers.
The last 5 metropolitan Melbourne Woolworths to transact include:
- Woolworths Burwood East $18,170,000 // 4.58%
- Woolworths Scoresby $15,120,000 // 4.54% Yield
- Woolworths Hadfield $11,750,000 // 3.5% Yield
- Woolworths Brighton $32,080,000 // 3.77% Yield
- Woolworths Brunswick $13,500,000 // 4.81% Yield
The metro supermarket will be sold off the plan with a brand new 7-year lease, with 6 x 5-year options until 2057, with completion expected to be in early 2020.
“It is clear why Woolworths have chosen this location to set up shop, especially given the significant traffic in and out of the train station opposite, plus over 1,500 apartments being built in the catchment over the next few years” Commented Kevin Tong.
The last off the plan Woolworths supermarket was also transacted by CBRE, being the Woolworths in Brunswick, transacting to a Taiwanese investor for $13,500,000 on yield of 4.81%.
“The premium property portfolio auction is continuing to attract a following from the market, buyers know what they will get when they come to one of our auctions which is why we are continue to restrict the portfolio to blue chip investments only”
CBRE’s next portfolio auction will be held on the 10th October 2019, which is expected to also market several other Melbourne supermarkets as well.