Supermarket chain Coles is offering a portfolio of neighbourhood shopping centres valued at approximately $250 million as it seeks to capitalise on strong investor demand for retail assets anchored by essential service providers. The properties, located across Western Australia, Victoria, Queensland, and New South Wales, are being marketed off-market by CBRE representatives Simon Rooney and Joe Tynan, although both Coles and the agency have declined to provide further details.
This asset sale forms part of a broader trend in retail property transactions observed throughout the year, with investors showing heightened interest in shopping centres anchored by supermarket brands due to their steady income streams amid economic uncertainty. Earlier this year, Woolworths sold a portfolio of ten neighbourhood centres for over $500 million to Asian investment firm Forest Endeavour. Similarly, industry superannuation fund-backed IFM Investors acquired a portfolio planned for development by Victorian firm Oreana, with an estimated end value near $300 million.
Buyers of supermarket-anchored retail assets have included established investors such as Charter Hall, which is expanding its convenience retail fund valued at more than $3 billion, along with HMC Capital, which has acquired properties in Sydney and Melbourne. Coles itself has been active in property transactions, most recently purchasing a complex in Albion Park, NSW, for about $57 million, a site previously occupied by Woolworths.
In related developments, ASX-listed MAAS Group is preparing to sell The Village Southlakes, a purpose-built neighbourhood centre in Dubbo, New South Wales. Anchored by Coles and Liquorland under a new 10-year lease with options extending to 2066, the centre serves a 1,900-dwelling master-planned community and generates around $3 million in annual revenue. Sebastian Fahey and David Mahood of JLL are managing the sale. MAAS Group’s decision to divest The Village Southlakes aligns with its strategic shift towards data centre investments, particularly in its stake in Firmus Technologies.
Other shopping centres are also being marketed. A fund managed by Kyron Capital is selling Tweed Mall in New South Wales through agents McVay Real Estate and Colliers. This 23,420-square-metre subregional centre, anchored by Woolworths, Coles, Aldi, and Target, carries concept approval for a mixed-use redevelopment project valued at approximately $900 million and is expected to attract offers around $100 million. Meanwhile, Acure Asset Management has engaged Stonebridge Property and Colliers to sell NorthWest Plaza in Brisbane and The Village Australind in Western Australia, with a combined target price near $110 million. NorthWest Plaza features nearly 9,700 square metres of retail space anchored by Woolworths and 21 specialty retailers, while The Village Australind is anchored by both Coles and Aldi and includes various specialty outlets with expansion potential.
Industry sources such as Colliers note that investor interest in neighbourhood shopping centres remains robust, with around $739 million invested in such assets during the most recent quarter. Demand is primarily driven by the appeal of retail properties centred on discretionary-resistant consumer spending and strong supermarket brands, which provide a reliable income base amid volatile market conditions.