The strength of Victoria’s freestanding supermarket investment market is set to be tested with the upcoming sale of Woolworths Monbulk as CBRE’s Nathan Mufale, Scott Hawthorne, JJ Heng and Jaycen Willox have been exclusively appointed to bring the metropolitan retail investment to the market.

The strong performing 6,900sqm freestanding Woolworths supermarket has been trading on the site since the 1980’s - servicing the region for over 40 years and recently underwent a substantial refurbishment in 2016. Woolworths Monbulk enjoys a 20-year triple net lease, further strengthened by available options until 2064.

This lease structure guarantees stability and long-term income growth potential with Woolworths trading in excess of their percentage rent threshold, making it an attractive investment prospect for discerning investors seeking reliable returns in the retail sector. With a net income of approximately $650,000, Woolworths Monbulk offers a solid income stream that is expected to appreciate over time.

This investment opportunity is expected to attract significant interest from investors seeking secure and lucrative assets, as properties with long-term leases to blue-chip tenants such as Woolworths are in high demand.

Located approximately 40km east of the CBD, Monbulk serves as a renowned gateway to the breathtaking Yarra Ranges and forms part of the Yarra Ranges Shire Council. The property is a short distance to major drawcards to the picturesque hills, including the 1,000 steps in Ferntree Gully, Silvan Reserve and Dandenong Ranges National Park.

“Recently we have seen yields for freestanding supermarkets sharpen substantially. This sector is consistently attracting both local and overseas buyer interest, underpinned by improved sentiment towards both retail performance and non-discretionary supermarket assets as a secure investment,” Mr Mufale said.

“Strong investor interest is expected for the site, underpinned by the established dominant supermarket tenant, significant street frontage to the area’s main road location, sizable landholding and triple net lease to a leading national retailer.” Mr Mufale continued.

“The unique topography & planning controls in the Yarra Ranges catchment ensures that finding a commercial 1 zone land parcel of this size, scale and accessibility that is capable of housing a full line supermarket with at-grade parking is almost unrepeatable. This Woolworths dominates the local zone,” said Mr Hawthorne.

“Freestanding metropolitan supermarkets are one of the most tightly held asset classes in the country given their net lease structure and track record for trading above turnover thresholds – providing more certainty of income growth,” Mr Hawthorne continued.

Mr Willox said “We have seen incredible demand from buyers who were classified as developers in the past 10 years who are now looking to recycle equity from successful projects into both metropolitan and regionally located retail investments, that provide cash flow and security from a major supermarket or discount department store.”

To request a copy of the Information Memorandum please contact one of the marketing agents CBRE’s Nathan Mufale, Scott Hawthorne, JJ Heng and Jaycen Willox via the contact details below. 

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