The Woolworths supermarket building in Mount Isa has sold for $16.91 million.
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The sale was brokered by Peter Tyson and Jon Tyson of Savills on behalf of a private investor following a competitive on market Expressions of Interest process.
Savills' National Director Peter Tyson said the sale process attracted multiple bids from across section of the market, including real estate investment trusts and fund managers.
"But it was dominated by savvy private investors with the successful purchaser being a Melbourne based private investor group," Mr Tyson said.
"The market was attracted to the blue-chip ASX listed Woolworths covenant and the long term lease security of over 10 years plus options".
Mr Tyson said long leased freestanding supermarkets were a tightly held and thinly traded asset class with this property changing hands for the first time in 30 years.
"In a long-standing commitment, Woolworths have leased and operated the purpose-built store for around 40 years," he said.
"The building was extensively upgraded in recent years, including the introduction of an online pick up facility last year and is one of only two major supermarkets servicing the extensive Mount Isa catchment and region."
The strongly trading 4441 square metre standalone supermarket is situated on the corner of Isa and Camooweal Sts with three street frontages on a 5084 square metre site and features open and underground parking for around 80 cars.
Strong performing retail assets in regional locations remains popular amongst investors, with SCA Property Group also investing in Mount Isa, beating a field of 10 rival bidders to purchase the Coles and Kmart anchored Mount Isa Village sub-regional centre from ISPT for $44.2million in April 2021 in a deal also brokered by Savills.
"Regardless of the post code, the fundamentals of core retail remain," Mr Tyson said.
"Convenience based retail centres underwritten by grocery, medical and other essential services continue proving their resilience in any market."
It was the second major commercial property transaction in Mount Isa this week with the government offices building at 75 Camooweal Street sold for $1.2 million.
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