A high-performing freestanding supermarket in inner Brisbane has come to market, as investors continue to seek trophy retail assets across the eastern seaboard.

The newly built Coles Kedron, at 346 Gympie Road, is expected to attract strong interest from risk-averse investors due to its long WALE appeal of almost 15 years.

Savills Australia’s National Retail Investments team, Peter Tyson, Ben Parkinson and Steven Lerche, has been appointed to manage the international expressions-of-interest campaign, with enquiry expected from various interstate and offshore buying groups.

“The market has an ongoing shortage of new high quality, freestanding supermarkets so we’re anticipating strong competition for Coles Kedron,” Mr Tyson said.

“Without a doubt, this supermarket is the best retail offering ever to come to the Brisbane market and buyers will recognise it as a genuine once-in-a-lifetime trophy investment.”

Mr Parkinson said the asset’s long-term WALE of 14.73 years was underpinned by a 15-year net lease to Coles which, coupled with strong depreciation benefits, would be very attractive to investors.

“New long-leased freestanding supermarkets are a highly desired investment-grade asset type,” he said.

“Coles and Coles Express are providing new long-term leases accounting for 98 percent of the tenancy area and providing unrivalled income security, with strong supermarket and liquor sales projected.”

Mr Tyson said the supermarket’s high-exposure site was a valuable drawcard, seven kilometres north of the Brisbane CBD.

“Gympie Road is a major arterial road, with more than 31 million cars passing the site each year,” he said.

“Coles acquired and consolidated the site over an extended period of time and positioned the development to capitalise on the city’s growing population, which is underpinned by Brisbane’s ongoing infrastructure investment boom, as well as rising interstate and offshore migration.”

He went on to say that Kedron and its surrounding suburbs were part of an affluent inner-city growth area.

“Coles Kedron dominates the trade area and features an income stream of almost $1.85 million net per annum,” he said.

“Its highly convenient freestanding design differentiates it from larger, less-convenient surrounding shopping centres, ensuring it will remain attractive to shoppers in the long term.”