Woolworths Group (ASX: WOW) has divested its self-anchored Banskia Grove shopping centre in Perth for $27.3 million, but will continue to rent its space under a 12-year lease.
The centre in the city's northeast has a net lettable area of 5,721sqm and was sold to an undisclosed Singapore-based private investor.
Woolies will now rent more than two thirds of that space with 10 additional five-year options, while real estate agency CBRE notes the centre is underpinned by 11 specialty tenants including Terry White Chemist, Plus Fitness and The Coffee Club.
Anthony Del Borrello and Richard Cash of CBRE's Western Australian retail investments team negotiated the sale of the newly constructed neighbourhood shopping centre at 103 Ghost Gum Boulevard.
Following a five-week international expressions of interest campaign, the complex was sold for $4,768 per square metre on a passing yield of 5.96 per cent.
CBRE says the campaign was highly competitive and attracted strong enquiry, with the team fielding more than 90 enquiries and seven offers.
Del Borrello explains the transaction demonstrates continued demand from offshore investors interested in well-positioned, quality retail assets anchored by strong national tenants, noting they have been particularly active in the Perth retail space over the past 12 months.
"In this time, over $70 million worth of retail assets have transacted, including Kelmscott Plaza at $19 million and Coles Vasse, which sold for $19.6 million both properties were acquired by private Asia-based investors," says Del Borrello.
"Investors based in South East Asia are drawn to Western Australia due to its geographical proximity and shared time zone, with many of the high-net-worth individuals' children opting to study in Perth, making it a logical, convenient location to invest in property."
Cash adds onfidence in the Perth retail market is steady with investors looking to capitalise on the state's increasing economic stability and attractive investment returns.
"Non-discretionary and service based neighbourhood shopping centres continue to be in high demand due to the insulation from economic fluctuations and impact of online retail sales," says Cash.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support