Strong demand for retail investments is creating an exciting Perth market, with CBRE announcing $60 million of sales in the first two months of 2019. This trend has sparked the move to sell Trinity Village – a Coles-anchored neighbourhood shopping centre in Perth’s expanding northern suburbs and the sale of Wattle Grove Shopping Centre for $16.3 million
A group of Perth-based developers have appointed CBRE to market for sale the recently completed shopping centre, located in Alkimos, approximately 40km north-west of Perth.
The neighbourhood centre is anchored by a full-line Coles supermarket (3,765m2), with a 15-year lease expiring in February 2033. Completed in 2018, the centre is located on a 2.16ha site and comprises 16 specialty retailers, including F45 Training, Juniper Medical Centre and a Shell petrol station. The centre generates a fully leased net income of circa $2.2 million.
Located opposite the new Butler secondary school, the highly exposed corner site has four street frontages with multiple ingress/egress points – providing excellent exposure to Marmion Avenue. The centre was developed to cater to the growing north west suburbs of Perth where the sought-after coastal lifestyle has attracted some of Australia’s largest developers, including Stockland, Peet and Cedar Woods.
CBRE’s Richard Cash and Anthony Del Borrello have been appointed to market the centre for sale via an International Expressions of Interest campaign closing 4 April.
“Neighbourhood shopping centres anchored by strong national tenants, such as Coles and Woolworths, continue to be highly sought after by investors due to the heavy reliance on non-discretionary spend and insulation from online sales,” Cash said.
“Evidencing strengthening interest in the sector, there was an increase from three neighbourhood transactions in 2017 to 12 in 2018, with notable sales including Flinders Square for $39.5 million at a 6% yield and Woolworths Aveley for $26.9 million at a 5.75% yield,” Del Borrello said.
Wattle Grove Shopping Centre has also sold for $16.3 million, the sale was managed by Anthony Del Borrello and Richard Cash, jointly with Knight Frank’s Todd Schaffer. The 3,103m2 Aldi-anchored neighbourhood shopping centre on behalf of WA developer Devwest. Mair Property Funds acquired the property at a yield of 6.25%.
“Wattle Grove Shopping Centre is the fifth retail asset to transact within just two months – indicating one of the strongest year-starts the market has experienced in some time,” Del Borrello said.
Cash added: “We expect to see yields for A-grade supermarkets and neighbourhood shopping centres continue to strengthen throughout 2019, fuelled by an influx of new buyers locally, nationally and globally entering the WA market.”