Sentinel Property Group has sold a homemaker centre in regional Western Australia to Harvey Norman for $28.25 million, as strong investor demand continues for homemaker centres. The pandemic fuelled demand for home improvement and furniture has established this category as a strong retail contender.
The 4.7-hectare Geraldton Homemaker Centre at 208-210 North West Coastal Highway has 12 tenants, including The Good Guys, Super Cheap Auto, Spotlight and Forty Winks. The property is about 420 kilometres north of Perth and has a gross lettable area of 15,948m2, with potential for expansion.
Sentinel acquired the centre for $27.3 million in 2015 and it was the group’s first WA investment.
“The decision to sell was based on Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market,” said Warren Ebert, Executive Chairman and Chief Investment Officer, Sentinel Property Group.
In the past 12 months, Sentinel has sold City West Plaza in Melbourne’s Sunshine North for $39 million to Assembly Funds Management, a fund backed by Westfield founders the Lowy family, and the Riverdale Shopping Centre in Dubbo NSW for $20.17 million. The business has its focus on industrial asset growth.
“Retail made up of 61.34% of the Sentinel portfolio in June 2015, but this has reduced to 28.1% of the portfolio by February 2021,” Ebert said.