Coles unloads Ormeau Village for $34m

Coles has sold Ormeau Village for $37m.

Neighbourhood shopping centres are trading at a rapid clip in Queensland, with supermarket giant Coles offloading Ormeau Village on the northern Gold Coast for $37m.

The centre traded to an offshore private investor on a tight passing yield of 5.3 per cent in a deal brokered by Savills’ Peter Tyson and Jon Tyson.

Coles developed Ormeau Village in 2019 and it comprises a fully leased neighbourhood shopping centre spanning 5003sq m anchored by a 3416sq m Coles supermarket, incorporating Liquorland plus 16 specialty tenancies.

It has a weighted average lease expiry of more than eight years.

Peter Tyson said that Ormeau Village transacted after attracting significant domestic and offshore buyer inquiry and bids from eight separate buyer groups.

“Bidders in the process included institutional and private investors as well as syndicate funds and totalled around $300m in unsatisfied capital still seeking a quality neighbourhood retail asset, preferred for its resilient qualities underwritten by daily-needs and essential service businesses,” Mr Tyson said.

Jon Tyson said that buyers were attracted to high quality of the development, together with the long weighted average lease expiry, which was underwritten by a rare net lease to Coles for a new 10-year term.

The supermarket has strong catchment fundamentals with households in a high-growth intercity corridor between Brisbane and the Gold Coast.

Others have been active in the area.

A private investor picked up Ormeau Marketplace from Clarence Property last year in a $34m deal.