German supermarket giant Aldi has purchased a four story office building in Sydney's northern suburbs for potential future redevelopment.
German supermarket giant Aldi has purchased a four storey office building at 810 Pacific Highway Gordon in Sydney’s northern suburbs for $26.6 million at a yield of 6.05 per cent. The retailer is looking for opportunities to break into markets where they don’t currently have a presence and the opportunity to purchase this site allows them to access the market around Gordon, currently dominated by a nearby Woolworths. The vendor, Marprop Real Estate Partners, a property fund management group led by James Marshall and Andre Biet, purchased the property for $15.9 million paid in 2011.
Marprop originally had plans to develop the 2,357 sqm site into an apartment complex, with 80 apartments and retail space. Aldi was introduced as a potential tenant for the retail space, and this subsequently led to Aldi offering to purchase the site.
Aldi was attracted by the location of the site in an area where it does not currently have a supermarket and by its potential future redevelopment prospects. At present the office tower on the site is mostly occupied by Allergen, which has a lease until 2018 with an option to extent to 2021.
Aldi has aggressive plans to open 25 stores a year on the eastern seaboard as well as up to 120 stores in South and Western Australia as it continues to take on the existing supermarket duopoly of Coles and Woolworths.