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ASX-listed companies are picking up some of the first pieces from the surprise exit of German retailer Kaufland earlier this year, with two of the group's nine sites now sold.
Schwarz Group-owned Kaufland reportedly spent $500 million on its now abandoned Australian foray, but a small percentage of that has been regained through the sale of two Victorian properties.
Colliers International is the exclusive marketer for Kaufland's Australian portfolio, and has succesfully facilitated the sale of 1-3 Gladstone Road, Dandenong for $18.2 million to Woolworths Group (ASX: WOW) and 592-694 High Street, Epping to Aventus Group (ASX: AVN) for $11.5 million.
In spite of the COVID-19 lockdown, Colliers says the nine development sites across Victoria, South Australia and Queensland have attracted significant interest and achieved benchmark results.
"The Kaufland portfolio campaign generated unprecedented levels of enquiry from private developers, fund managers and offshore capital with the highly exposed sites attracting very strong competition in the face of escalating COVID-19 conditions," says Colliers lead agent Alysia Reilly.
"The remaining sites are all in exclusive due diligence and we look forward to announcing those transactions in due course."
A Woolworths Group spokesperson says the company looks forward to engaging with the City of Greater Dandenong Council and with the local community in relation to its future plans for the site.
"As our customers increasingly look for convenient shopping locations, we've had the opportunity to acquire a retail site in Dandenong in Victoria," the spokesperson says.
Aventus CEO Darren Holland says the Epping site is adjacent to the group's Epping Home centre, with the acquisition due for completion in late July 2020.
"Epping is one of the fastest growing catchments of Melbourne, with the main trade area due to grow by 100,000 people or 36 per cent by 2024," says Holland.
"This high profile corner site is strategically located in metropolitan Melbourne, 20km from the CBD and positioned between the Epping train station and Epping Plaza; a major shopping centre anchored by Woolworths, Coles, Costco and over 230 specialty shops."
Colliers' director of retail investment services, Tim McIntosh, says the national portfolio campaign has illustrated a "flight to quality" during the COVID-19 lockdown.
"The premium and strategic nature of the nine development sites saw overwhelming enquiry, with more than 500 enquiries received across the nine sites," he says.
"By acquiring the high-profile Victorian sites, the ASX-listed retailers were able to unlock the potential to deliver high quality retail developments in Australia's most competitive retail market.
"Typically, assets in Victoria attract the most aggressive investor competition due to the parochial local market combined with its position as an attractive destination for offshore investors."
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