A newly constructed neighbourhood shopping centre anchored by a high-performing Woolworths supermarket has sold to ISPT Retail Australia Property Trust.
Colliers, on behalf of Woolworths Group, sold the centre 35 kilometres north of the Perth CBD, after a highly competitive on-market campaign.
Colliers head of retail middle markets Australia, James Wilson and state chief executive for Western Australia, Richard Cash brokered the deal.
Wilson said: “This transaction marks a significant shift in the buyer profile for neighbourhood shopping centres, with institutional capital now comprising 40% of the buyer profile neighbourhood shopping centres nationally 2024 YTD.
“Conversely, private capital, which represented 80% of the market in 2023, has normalised back to around 40%. This renewed institutional interest is driven by improved financing conditions and underscores the robust demand for high-quality, convenience-based retail assets.”
Cash added: “This transaction underscores the strong demand for high-quality retail assets in Western Australia. The campaign generated over 135 inquiries, resulting in $170 million of unsatisfied capital. Historically, Perth’s neighbourhood shopping centres have been dominated by local private investors and funds. However, this sale highlights growing competition from eastern seaboard capital.”
This addition aligns with the $2.5 billion IRAPT fund’s strategy to reinvest capital into high-quality neighbourhood centres strategically located within key geographic hubs where non-discretionary retail continues to demonstrate resilience and long-term income stability.
The new 6,466 square metre neighbourhood shopping centre is anchored by a modern, 4,207 square metre Woolworths supermarket, supported by The Reject Shop, Revo Fitness, a pharmacy, kiosk and five other specialty tenants.
Occupying a strategic 26,604 square metre corner site adjacent to Ocean Keys shopping centre, it offers 312 on-grade car parking spaces and new direct to boot service.
The site benefits from a long WALE of 8.78 years by GLA and 8.14 years by income, with Woolworths securing 65% of GLA and 58% of gross income.