“Free-standing or strata supermarkets have traditionally been tightly held, however some homeowners are actually selectively divesting belongings to capitalise on the robust demand for the defensive belongings.”
Momentum has carried into 2020 with JLL transacting greater than $80 million of grocery store and supermarket-anchored actual property gross sales within the first few months of the 12 months on yields between four and 6 per cent.
Gross sales that settled in 2020 embody the Coles Newstead in Launceston, which offered for $11 million; the Woolworths-anchored Cowes Purchasing Centre on Phillip Island, which ASX-listed SCA Property Group offered for $21.5 million to Melbourne’s Delios household; the Drysdale Village Purchasing Centre in regional Victoria, which offered for $13,9 million; and the Coles Northcote in Melbourne which fetched $25 million.
About $190 million of grocery store belongings are actually in the marketplace, together with a $130 million portfolio of four being offered by Woolworths in Darwin, Melbourne and Sydney. Additionally up on the market is the Coles-anchored Entrada Purchasing Centre in Parramatta.
In response to JLL Analysis, Woolworths and Coles – which are both divesting assets to recycle capital into their operating businesses – have dominated transactions, accounting for nearly 90 per cent of offers since 2007.
Aldi, which is seeking to divest a $700 million portfolio of logistics assets, has retained most of its retail actual property and accounted for simply 2 per cent of transactions over the previous 12 years. Impartial chain IGA accounted for eight per cent of offers.
JLL analyst Louise Burke stated with each Woolworths and Coles now closely investing into final mile and distribution centre applied sciences, there was little question the proportion of on-line grocery spending would rise.
“Nonetheless, bodily shops will proceed to play a powerful position with ‘click on and accumulate’ choices proving widespread amongst shoppers,” she stated.