Woolies goes to private investor
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.