Coles Toowoomba hits the market

  • 9.74 year old WALE
  • Fully leased net operating income of $1,433,918 per year
  • Opened in July 2020

Private investors are expected to punt a regional shopping center in Queensland as Coles Toowoomba hits the market about two years after it opened.

The full-range stand-alone Coles Supermarket and Liquorland opened in July 2020 and is supported by a specialist food and drink retailer.

The property

The Coles Shopping Center has an initial 10-year net lease with eight five-year options. It has a WALE of 9.74 in revenue and a fully leased net operating income of $1,433,918 per year.

GLA’s 3,756 m² are located on 1,536 hectares of land and include 187 parking spaces. The property is expected to see significant interest due to the Coles lease:

“Investors continue to target investment in high-performing supermarkets and neighborhood shopping malls, as the supermarket lease structure provides investors with a natural inflationary hedge due to the potential for supermarket turnover to lease. Coles’ investments are viewed by investors as top-notch as they feature a popular net-lease structure that pays turnover rental for online sales,” said James Wilson of Colliers.

“We anticipate exceptional levels of interest from primarily private capital for Coles Toowoomba, as pent-up demand for the brand new investments in QLD’s stand-alone supermarkets has built up since the last ‘sale and divestment’ transaction. -lease’ registered in 2019.”

The area

Expected to grow by 55,000 people by 2051, Toowoomba is about 1.5 hours from Brisbane and is Australia’s second most populous inland city.

“Toowoomba plays an important role as a major economic and service delivery hub for the Darling Downs. Currently experiencing an influx of major infrastructure developments totaling over $14 billion and conveniently located 90 minutes from Brisbane, Toowoomba stands to benefit from continued growth and increased competitive advantage in the commercial and residential markets,” said said Collier’s Dan Dwan.

A 100% interest in the property is offered for sale via Expressions of Interest closing September 28, 2022.

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