Generational Freehold supermarket Investment for sale in Ringwood East
The Freehold of A family-owned IGA supermarket in Ringwood East is up for auction after 42 years of ownership.
Positioned on the corner of Railway Avenue and Wenwood Street, opposite the Ringwood East train station, the 2,000sqm freestanding supermarket is the anchor of the Ringwood East commercial and retail precinct, featuring a council car park at the rear of the store.
The property will be offered for sale with anew 10-year net lease to Paul’s Supa IGA, the supermarket’s longstanding and established operator, on a commencing rental of $406,000 per annum with annual CPI rent increases.
Ringwood East is a prominent north-eastern growth suburb and, having seen significant gentrification over the past five years, the suburb’s median house price has experienced a 62% growth.
CBRE’s Victorian Freestanding Retail Investments team of Leon Ma, Kevin Tong and Joseph Du Rieu has been appointed to lead the campaign and is expecting both domestic and international purchasers will be attracted to the property’s premium location and price point.
Mr Arthur Corcoris, one of the owners, commented “After we saw the premium prices achieved by the CBRE team at the Premium Property Portfolio Auctions in 2018, our family gained great confidence that the platform is the only method of exposing the investment to the national and international buyer markets”
“Our family has enjoyed owning this investment for more than 40 years, given the different stages of life we are all in, it is time to say goodbye to the property and go our separate ways”
“With the suburb’s gentrification, supermarket operators have sought to improve their offerings to meet the needs of clientele. As such, Paul’s IGA in Ringwood East is an investment underpinned by a high performing supermarket business,” Mr Tong noted.
“The listing offers purchasers the opportunity to secure a prime land holding, spread across 2,135sqm of Commercial 1 Zone Land. This flexibility will attract investors and developers looking to land bank on the investment, collect rent over the next few years and develop the property in the future – a common trend in this market.”
Following the sale of close to $200,000,000 in freestanding supermarket investments in 2018, CBRE’s Victorian Retail Investments team anticipate this opportunity will be attractive to a broad investor base.
“With Chinese New Year on February 5 and an influx of tourists visiting Melbourne, we field strong enquiry for commercial investments at this time of year and we anticipate the international investor market from Asia will be extremely active over coming weeks,” Mr Tong added.
“With a sub $10 million price tag, the property is accessible to a far deeper pool of potential purchasers. We seldom have the privilege of offering such a premium property that boasts all of the fundamentals: strong underlying land, quality tenant, new lease and income growth.” Mr Du Rieu explained.
CBRE’s Asian Services Desk actively seeks international investors for supermarkets and shopping centres in Victoria and will work to support the sale campaign. In 2018, the Asian Services Desk team transacted 71% of the team’s supermarkets to Asian investors including the Woolworths Burwood East ($18,170,000, 4.58% yield), Woolworths Scoresby ($15,120,000, 4.54% yield) and Coles Maroondah Village shopping centre ($18,800,000, 4.71% yield).