Done deal ‘up, up, up’ to $30 million
DEFYING it’s ‘Down, Down’ price catchcry, a Coles supermarket on the Gold Coast has sold at one of the highest auction prices for a Queensland retail property all year.
But the winning bid of $30.025 million from an inroom buyer did reflect a record low yield of 4.59 per cent in the highly sought-after investment asset class.
Billed as one of the most anticipated auctions this year, yesterday’s sale of the newlydevelopment Coles Pacific Pines drew a packed room at the Sheraton Grand Mirage.
One of 14 registered bidders attempted to kickstart the event with an $18 million offer but auctioneer David Scholes wouldn’t buy it.
“The trouble is, sir, you’ve been watching the Coles ads ‘down, down, prices are down,” he said. “We can’t have that today. We need ‘up, up’ ... you love your eights, make it $28m and we’ll see how we go.”
Another bidder from the back of the room quickly got down to serious business, chiming in with an opening bid of $24 million.
Almost an hour later, the property was officially declared to be on the market as bidding reached $29.25m.
“We’re playing for keeps now, it’ll definitely be sold today,” Mr Scholes said.
But with two parties — one in the room and the other on the phone from Melbourne — crunching the numbers as they waged a bidding war, it took another 20 minutes before the hammer finally fell. In total 76 individual bids were placed at the auction.
Marketed by Savills’ Peter Tyson, Steven Lerche and Pat De Maria, the 3717sq m freestanding Coles supermarket incorporating a 150sq m Liquorland store is on a 10,150sq m site is just 10km from Surfers Paradise.
It was opened last November and has grade level and undercroft parking provided for 194 vehicles.
The property at 2 Norris St boasts a rare 15-year net lease — generating rental of $1,389,504 a year — with four 10-year options until 2072.
Mr Scholes said Coles was selling the asset “to move forward with further developments”.
He told bidders long-term net leases were extremely rare and coupled with its strategic location in a growth corridor, the asset offered a clean, passive investment