Coles Launceston (128 Wellington Street) primely located within Tasmania’s second largest city is set to test investor demand in the hotly contested freestanding supermarket sector. 

JLL’s Tom Noonan, Stuart Taylor, Jarrod Herscu, and MingXuan Li in conjunction with Stonebridge’s Rorey James, Kevin Tong, and Justin Dowers have been appointed to run the Public Tender process on behalf of a Private Investor.

Coles Launceston emerges as the first freestanding supermarket to be offered to market in Launceston in over seven years. The property sits on a highly strategic gateway corner boasting three frontages and occupying a prime 5,590 sqm landholding less than one kilometre from Launceston’s vibrant city centre.

The rare offering presents a strong performing 2,164sqm* store currently paying turnover rent, with at-grade parking for 110 vehicles. The opportunity’s attractiveness is magnified with plans already in place for a complete redevelopment of the supermarket, turning it into a large 3,700 sqm full-line store, which would make it the largest freestanding Coles in Launceston.

Tom Noonan, Director of Retail Investments at JLL remarks, “The opportunity Coles Launceston presents is twofold: a robust supermarket in a highly strategic location, and the clear potential for a significant redevelopment to turn the asset into Tasmania’s flagship freestanding supermarket. It’s a combination that’s hard to find and presents a valuable proposition for investors. 

Rorey James from Stonebridge adds, “It’s rare to encounter a property offering such flexibility. Whether an investor is looking to capitalise on a robust supermarket performance or pivot to harnessing the redevelopment potential, Coles Launceston offers a unique proposition.”

Senior Director at JLL Stuart Taylor said: “Transactions of freestanding supermarkets and neighbourhood shopping centres have contracted in 2023, with volumes down approximately 37% on 2022, and 74% on the record high volumes seen in 2021. However, this has largely been due to supply, with extremely low amounts of assets being presented publicly to the market. 

We are actually seeing very strong demand for this retail sub-sector due to the highly defensive and secure nature of the income streams. Freestanding supermarket investments are often referred to as ‘recession proof’.”

Justin Dowers notes, “Freestanding supermarkets are always an investor favourite. The blue-chip fundamentals of the asset class are of great appeal to a variety of investors and we expect Coles Launceston to attract a strong amount of interest.” 

Coles Launceston is being offered for sale via Public Tender closing at 4:00 pm (AEDT) Thursday, 18th October 2023.