A brand new, freestanding full-line Coles Supermarket and Liquorland in one of Australia’s fastest-growing regional hubs has come to market.
Opened in July 2020, Coles Toowoomba is supported by one specialty food and beverage retailer and comes with an initial 10-year net lease term with eight five-year options. It has a 9.74-year WALE by income and fully leased net operating income of $1,433,918 per annum.
The 1.536-hectare site has recorded strong sales due to its strategic location in Toowoomba’s Western Growth Corridor, and convenient design which includes ‘on grade’ parking for 187 vehicles.
With a GLA of 3,756m2, the centre was delivered by Coles Group Property Developments and features high-quality construction, offering exceptional depreciation benefits.
James Wilson, Stewart Gilchrist and Dan Dwan of Colliers are the exclusive listing agents, with price expectations of circa $30 million.
“Investors continue to target high performing supermarket and Neighbourhood Shopping Centre investments given the supermarket lease structure affords investors a natural inflationary hedge due to the potential for supermarket turnover rental, with Colliers executing over $400 million in value of Retail Middle Markets transactions across 9 deals since May 2022. Coles investments are considered by investors to be class-leading given they feature a prized net lease structure which pays turnover rental for online sales,” Wilson said.
“We anticipate exceptional levels of interest from predominantly private capital for Coles Toowoomba, given pent up demand for brand new QLD freestanding supermarket investments has been building since the last ‘sale and lease back’ transaction was recorded in 2019,” Gilchrist added.
“Toowoomba plays a significant role as a major economic and services provision hub for the Darling Downs. Currently experiencing an influx of major infrastructure developments totalling more than $14 billion and ideally positioned 90-minutes from Brisbane, Toowoomba is expected to enjoy continued growth and enhanced competitive advantage in both Commercial and Residential markets,” Dwan said.
Toowoomba is the second most populous inland city in the nation and is a large commercial hub that provides education, employment and healthcare services to the region.
A major economic and services provisions hub for the Darling Downs region, Toowoomba’s population is expected to grow by more than 55,000 persons by 2051. Investment within the region is key and has improved Toowoomba’s links to Brisbane and the global market. Highlights of this include The Wellcamp Airport, InterLinkSQ, Toowoomba Bypass and Inland Rail.
Main trade area retail spending is currently estimated at $365 million and is projected to increase to $768.7 million by 2041, representing a strong average annual growth rate of 4% per annum.
A 100% interest in Coles Toowoomba is being offered for sale via Expressions of Interest (EOI) closing Wednesday 28 September 2022.
