Supermarket premium

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Supermarket premium

 

A COASTAL supermarket holding has sold big with local investors driving the price.

IGA St Leonards at 1370-1372 Murradoc Rd sold for $5.625 million at a land rate of $4,374 per square metre and 5.06 per cent yield, Darcy Jarman Geelong West agent, Tim Darcy, said.

The supermarket was expected to sell for about $5 million.

“It certainly surpassed our expectations and produced a yield. It’s without doubt the strongest yield an IGA in a regional area has attained,” Mr Darcy said.

The building is five years old, with a lease in place for 15 years plus options.

“It’s already been trading vibrantly since its inception in 2012,” Mr Darcy said. “It led to a number of parties having a keep appetite.”

The property attracted a crowd of more than 50 people to the auction, in which bidding opened at $4 million.