Coles is selling a newly developed, ultra-prime freestanding supermarket on the Gold Coast at what will be one of the largest and highly anticipated auctions in Queensland next month.

Located at Pacific Pines, just 10km east from Surfers Paradise, the 3,717sq m Coles Supermarket incorporating a 150sq m Liquorland store opened in November 2016. The property boasts a rare 15 year net lease with four 10 year options until 2072.

For sale through Peter Tyson, Steven Lerche and Pat De Maria of Savills Australia, the asset features a 10,150sq m site with grade level and under-croft parking provided for 193 vehicles.

According to Peter Tyson, Savills National Director, Retail Investments, “Long term net leases such as this are extremely rare in the marketplace, which coupled with the strategic location within a strong population growth corridor, make the asset very desirable for risk-averse investors. This is a gilt-edged property.”

“Freestanding Coles Supermarkets are one of the most highly sought after asset classes in the Australian commercial property market. The offering is enhanced by a very attractive net lease structure whereby Coles is responsible for all operating expenses – a rare attribute in the Queensland market,” he said.

According to Steven Lerche, Savills National Director, Retail Investments, “We expect interest from a range of interstate, local and offshore privates, looking for freehold ‘set and forget’ blue-chip investments with strong depreciation benefits.”

“Coles Supermarkets Australia Pty Ltd is wholly owned by Wesfarmers, a Top 10 ASX Listed company that not only is attractive to onshore investors, but will be seen as a safe haven for global investors,” he continued.

Savills Associate Director of Retail Investments, Pat De Maria also commented “Recent transactions of freestanding supermarkets over the last 12 months have achieved yields ranging between 3.77 percent and 5.27 percent, with the average yield around 4.5 percent.”

“It was also interesting to note, Savills transacted the Coles’ developed and anchored Coburg North Village Shopping Centre featuring 15 specialty shops for $37.98 million at a record yield of 4.9 per cent.”

The Coles Supermarket at Pacific Pines is to be offered for sale via public auction through Peter Tyson, Steven Lerche and Pat De Maria of Savills Australia on Thursday 20 July 2017 12pm at Sheraton Grand Mirage, Gold Coast.