Coles Vermont South: Burwood Highway supermarket set for $20m sale
One of Coles’ best performing supermarkets is set to sell for tens of millions of dollars, as another much-loved Vermont South shop also hits the market.
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A supermarket which has been the cornerstone of a shopping centre in Melbourne’s east for more than 40 years is set to sell for tens of millions of dollars, just months after a swish upgrade.
Coles’ 4216sq m store at Vermont South Shopping Centre is on the market, with agent Stonebridge taking expressions of interest.
The agent is expecting the building to sell for more than $20m.
All stores at the Burwood Highway shopping centre have individual landlords, and Coles has signed on as a tenant until at least 2029, with the option to extend for another 10 years afterwards.
The supermarket had a multimillion-dollar refurbishment completed in August, which included a new deli, bakery and fresh food section, along with reconfigured check-outs and expanded click and collect facilities.
Stonebridge’s national partner Justin Dowers said Vermont South was one of Coles’ best performing supermarkets in the area, and the refurbishment showed the company was committed as a long-term tenant.
He said the site had been owned by a family for generations and inquires had mainly come from property funds and wealthy private investors.
“We’ve had an influx of interest in the property so far,” Mr Dowers said.
“The investment has served the family very well across multiple generations, and now there is a great opportunity for the property to provide the same level of opportunity for a new buyer to own it for multiple generations as well.”
A Coles spokeswoman said the supermarket giant had been thrilled with the customer response to the store’s recent upgrades, and it was looking forward to “continuing to provide great value and service to local residents in Vermont South.”
The upcoming sale of the Coles space is one of three to be listed at Vermont South Shopping Centre in recent months, a year after the centre had its first revamp in about 35 years.
The Roasted Coffee Bean cafe was sold at auction on September 29, while the longstanding Good Cents gift shop is also being offered to a new landlord.
According to agents Gorman Allard Shelton, the shop, which has been based at the centre for more than 25 years, provides $60,000 in rental income per year and is secured as a tenant until July 2025.
It will be auctioned on-site at noon on November 10, while expressions of interest in the supermarket close on the same day at 5pm.