Woolies goes to pri­vate in­vestor

The Weekend Post - - News -

NICK DAL­TON ne­go­ti­ated the trans­ac­tion with col­league Sam Hatcher, said the sale price re­flected a yield of 5.9 per cent.

Town and Coun­try built the 3947sq m free­stand­ing sin­glelevel su­per­mar­ket com­plex for about $15.4 mil­lion in 2014 on the main road into Moss­man.

The prop­erty is un­der­pinned by a se­cure semi-gross lease to Wool­worths un­til 2034 with four 10-year op­tions.

It com­prises the 3798sq m su­per­mar­ket – the only Wool­worths north of Cairns – and a 149sq m liquor store on a 13,930sq m site with 220 car parks. It was sold with an ex­ist­ing ap­proval for fu­ture ex­pan­sion to both the su­per­mar­ket and for spe­cialty floor space.

“There was strong in­ter­est from in­vestors, syn­di­ca­tors and funds man­agers who were at­tracted to Wool­worths Moss­man due to its per­for­mance and low threat of new com­pe­ti­tion,” Mr Swan said.

“The premium su­per­mar­ket pre­sented a highly soughtafter in­vest­ment op­por­tu­nity with a se­cure in­come stream and guar­an­teed growth from an ex­pected base rent re­view of 5 per cent ev­ery five years. The next re­view is sched­uled for June 2019,” he said.

Mr Hatcher said the sale of the Moss­man prop­erty was an­other ex­am­ple of pri­vate in­vestors seek­ing steady cash­flow from re­tail as­sets in the form of free­stand­ing super­mar­kets.

“They are known to be de­fen­sive to ex­ter­nal fac­tors such as an eco­nomic slow­down, changes in house­hold dis­cre­tionary spend­ing ca­pac­ity or changes in fi­nan­cial mar­ket con­di­tions,” he said.

STRONG IN­TER­EST: The Wool­worths su­per­mar­ket com­plex at Moss­man in Far North Queens­land sold for $23.75 mil­lion.

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