Coles Toowoomba to hit the market

Private investors are expected to make a punt for a regional Queensland shopping centre as Coles Toowoomba comes to market some two years after it opened.

The freestanding, full-line Coles Supermarket and Liquorland was opened in July 2020 and is supported by one specialty food and beverage retailer.

The property

The Coles shopping centre comes with an initial 10-year net lease term with eight five-year options. It has a 9.74-year WALE by income and a fully leased net operating income of $1,433,918 per annum.

The 3,756sqm of GLA is sat on a 1.536-hectare site and includes 187 parking spaces. The property is expected to see significant interest due to the Coles lease:

“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. 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,” said Colliers’ James Wilson.

“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.”

The area

Expected to grow by 55,000 people by 2051, Toowoomba is some 1.5 hours out of Brisbane and is the second most populous inland city in Australia.

“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,” said Collier’s Dan Dwan.

A 100% interest in the property is being offered for sale via expressions of interest closing 28 September 2022.

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