Chinese investor buys Vasse Coles for $20m

An unnamed Chinese private investor has purchased a Coles supermarket in the state’s South West for $19.6 million, part of a $50 million asset sell-off by the retail chain.

The sale was brokered by CBRE's Richard Cash, Anthony Del Borrello and Kevin Tong and achieved a yield of 5.67 per cent.

At $19.6 million, the purchase price equates to a rate of $4,958 per square metre for the 3,754sqm supermarket.

The property is located at the Margaret River-Dunsburough turnoff in Vasse.

CBRE director of WA retail investments Richard Cash said the campaign, which was launched in September, received 160 separate enquiries and six bids.

“The strong result is a testament to the collaboration between the CBRE retail investments team and the CBRE Asian services desk attracting the most aggressive capital into WA,” he said.

Coles placed the Vasse supermarket up for sale last year along with another supermarket in Albany, offering new 15-year leases on both properties.

The portfolio up for grabs also includes a Coles petrol station in Vasse, with a new 10-year lease.

At the time of the sales launch, Mr Cash said buyer interest would be underpinned by the strong tenant covenant and the location of the assets.

“With the South West being WA’s fasted growing region and among Australia’s top five over the past 10 years, the opportunity to acquire a substantial retail footprint in the area backed by a major national retailer will be strongly sought after,” he said.