Toowoomba Coles in Glenvale hits market through agency Colliers International

One of the newest supermarkets in Toowoomba has hit the market, two years after it was built. And agents reckon it could fetch some eye-watering offers from investors.

The newest Coles supermarket in Toowoomba will go up for sale just two years after it was built in a growing western suburb.

The new site on the corner of Glenvale Road and Greenwattle Street in Glenvale has hit the market through an expressions of interest campaign with Colliers International.

The freehold investment opportunity includes the Coles, a liquor store, cafe and 187 car parks.

Lanskey Constructions completed the project in mid-2020, after the supermarket spent several years in development.

Colliers retail middle markets head James Wilson said the property had a 10-year lease currently on it, with options out to 2073.

He suggested the Coles, which has a gross area of 3700 sqm, could attract figures upwards of $30m.

The Coles supermarket in Glenvale has hit the market through Colliers International, with agents expecting to attract offers of around $30m.

“Investors continue to target high performing supermarket and neighbourhood shopping centre

investments given the supermarket lease structure affords investors a natural inflationary hedge due to the potential for supermarket turnover rental, with Colliers executing over $400 million in value of retail middle markets transactions across 9 deals since May 2022,” Mr Wilson said.

“Coles investments are considered by investors to be class leading given they feature a prized net lease structure which pays turnover rental for online sales.”

Below: Major developments in Glenvale/Harristown since 2019

Colliers Queensland national director Stewart Gilchrist said the property had an average lease expiry of just under 10 years.

“We anticipate exceptional levels of interest from predominantly private capital for Coles Toowoomba, given pent up demand for brand new QLD freestanding supermarket investments has been building since the last ‘sale and lease back’ transaction was recorded in 2019,” he said.

Colliers International Toowoomba managing director Dan Dwan said investors would also be attracted by the growth of Glenvale and the city in general.

“Currently experiencing an influx of major infrastructure developments totalling more than $14 billion and ideally positioned 90-minutes from Brisbane, Toowoomba is expected to enjoy continued growth and enhanced competitive advantage in both commercial and residential markets,” he said.

Coles has remained tight-lipped on how much the supermarket cost to build, citing commercial confidentiality.

But the company said it had invested $40m into its Toowoomba stores in the eight years leading up to 2020, which included the construction of Glenvale.

The expressions of interest campaign ends on September 28.