Written by Carolyn Cummins, The Age
A Melbourne investor has acquired a new Woolworths supermarket at Medowie, just north of Newcastle, for $18.9 million, which equates to a net yield of 6.5 per cent.
The sales agents at Burgess Rawson said the deal was completed before the auction, indicating the strong demand for assets leased to Woolworths. The initial lease term is 20 years.
Burgess Rawson’s Darren Beehag said investors were also attracted to the forecast population growth in the Port Stephens region. This had resulted in significant private and public investment in the area, he said.
There is also the expansion of Newcastle Airport, which is not far from the property.
“Freestanding supermarkets rarely become available on the open market because those who own them, more often than not, want to acquire another rather than sell,” Mr Beehag said.
“This acts as a major impediment to supply and ensures those supermarkets that are offered for sale attract keen interest.”
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