Industry News

Vicinity Centres puts Midland Gate Shopping Centre on the market

Vicinity divests Midland Gate in WA

Vicinity Centres has put Midland Gate Shopping Centre in Perth on the market. The centre is a dominant and strong performing regional shopping centre, which has recently undergone a major $100 million redevelopment and expansion, completed in March 2019.

Located in northern Perth’s growth corridor

JLL’s Australasian Head of Retail Investments Simon Rooney, has been exclusively appointed on behalf of the Vicinity Retail Partnership (VRP) and one of Vicinity Centres’ mandate clients, to sell a 100% freehold interest together with management rights.

Midland Gate Shopping Centre is the dominant regional centre in Perth’s eastern suburbs, with a total gross lettable area (GLA) of over 68,600m2, strategically positioned at the gateway to Perth’s burgeoning northern growth corridor. The $100 million redevelopment and expansion included the introduction of leading national brands Aldi, Harris Scarfe, JB Hi-Fi, Rebel Sport, a new fresh food precinct anchored by a brand new and expanded Coles supermarket, an upgraded food court and a refurbished new generation Kmart store.

Rooney said, “While retail investors are selective, high quality, core regional shopping centres with management rights are a highly unique offering and keenly sought, particularly those that sit in strategic population growth corridors, within the tightly held Perth market.

The centre’s latest development was completed in March 2019

“Regional shopping centres in Perth are rarely traded, given their high rate of sales productivity relative to similar assets in other states. There have been only three comparable transactions over $300m in the last decade, demonstrating the lack of investment opportunities to access product in this key market. The last individual regional centre to transact in WA was a one-third share in Karrinyup Shopping Centre in 2013, which UniSuper acquired from Westfield for $246.7m.

The sale is set to attract local and international buyers

Investors are attracted to the regional asset class given its status as the most defensive retail sub-sector and offers the highest risk-adjusted returns.” he said

“There are tangible signs of a recovery in the WA economy, supported by the rebound in state economic growth and stabilising commodity prices and mining investment. Investors are making a strategic decision to enter this market counter cyclically, to capitalise on this recovery and strong relative value that the state offers,” said Rooney.

International Expressions of Interest to purchase Midland Gate close at 12pm (AEST) on Thursday 13 June 2019.

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