Coles to sell Torquay Village shopping centre

Grocery giant Coles will hope its “down, down” jingle works in reverse as it takes one its key Geelong assets to market this week.

The company is selling Torquay Village, the first Coles-anchored Victorian neighbourhood shopping centre to be available this year, offered by JLL Victorian Retail Investments directors Stuart Taylor and Tom Noonan.

The property includes a full-line Coles supermarket and Liquorland and 15 speciality shops and will be offered in by expressions of interest.

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In 2016, two Coles-anchored neighbourhood shopping centres traded hands — with Springhill Shopping Centre selling for $43 million reflecting a 5.5% yield, and Coles’ Coburg Village selling for $37.98 million — a 4.94% yield.

Torquay Village shopping centre will hit the market later this week.

A Fairfax Media report suggests the Torquay centre could sell in the high $30 million mark. Coles Group Property Developments acquired the 1.4ha Bristol Rd centre in 2013 — paying $14 million, according to CoreLogic, before the centre underwent a major redevelopment and extension in 2015 to deliver a new Coles and Liquorland and reposition the specialty stores.

Coles has signed a new 15-year lease on the site, while 81% of the centre’s income is derived from national retailers.

“Retail assets with strong lease covenants such as Coles continue to be hotly contested,” Noonan says.

“With high liquidity levels in the market, these assets attract investors as they are considered to be low risk, defensive assets, offering strong security of income.

“The Torquay catchment is a standout growth area in Victoria, and will continue to drive the performance of assets such as Torquay Village.”

Between 2001 and 2013, Torquay’s population experienced growth of more than 67%.

This article from the Geelong Advertiser was originally published as “Coles to puts Torquay Village shopping centre on the market”.