Riverton Coles sells for $32m

A private interstate investor has purchased the Coles complex in Riverton, which includes a supermarket, a First Choice Liquor, a TAB and a 300-bay carpark, for $32 million.

The strong performing supermarket, which was opened in September 2016, was sold on a 5.29 per cent net yield, with a 5,700 square metre retail component that is fully leased.

The Coles lease was a new 15-year lease with four 10-year options and the First Choice Liquor lease was for 10 years with eight five-year options.

The investor purchased the complex from from Coles Group Property Developments.

Savills director Steven Lerche the site had a number of appealing attributes.

“Parkwood (Riverton) is a popular metropolitan suburb of Perth, close to the airport, and the prime location on a busy main road south of Perth CBD ensured a swift and successful sale, not to mention a solid yield for the Perth retail market,” he said.

Savills received more than 290 enquiries for the property, with significant interest locally and on the east coast.

According to Savills research, the WA retail investment market continues to be one of the most tightly held markets in Australia, with the retail asset class remaining the most popular among investors. 

Savills retail investments director Chris Ireland said it was the first sale of a full-service supermarket in Western Australia in over a decade.

“The distinct lack of stock in the premium-grade retail sector in WA ensured the asset was well received by a buyer pool that has previously been starved for high-quality offerings," he said.