A syndicate of developers has sold Trinity Village, a neighbourhood shopping centre in Perth’s north western growth suburb of Alkimos, for $34,050,000. With a net lettable area of 6,081m2, the neighbourhood shopping centre is anchored by Coles on a long 15-year lease and underpinned by 16 specialty tenants, including a Shell service station, medical centre and childcare centre. Purchased by a private local investor, Trinity Village transacted at a rate of $5,599 per m2 at a 5.84% yield setting a new benchmark for Coles anchored neighborhood shopping Centres in WA.
Trinity Village is located on a high exposure corner site with four street frontages, including Marmion Avenue, which experiences traffic of over 23,000 vehicles per day. The architecturally designed centre is built around convenience and community activation and was completed in 2018.
Richard Cash and Anthony Del Borrello of CBRE’s Western Australian Retail Investments team negotiated the sale. Del Borrello said that after a five-week International Expressions of Interest Campaign, the property had garnered 86 enquiries and seven offers from a mix of local and east coast investors and offshore groups.
“There continues to be high demand for neighbourhood shopping centres, due to security offered by the high percentage of income that is derived from ASX listed tenants, namely Coles and Woolworths, and the income growth from potential percentage rent and specialty tenant reviews,” Del Borrello commented.
“Insulation from economic fluctuations and the impact of online retail sales has also contributed to high demand for non-discretionary and service based neighbourhood shopping centres.”
Cash added that this was the sixth neighbourhood shopping centre sale in WA in 2019, with a total transaction volume of over $100 million.
“In the face of negative sentiments surrounding the retail investment market, we have already seen three transactions and $45 million more than this time last year and the average yield has tightened to 6.19%,” Cash said.