Perth, 16 July 2015 – Champion Drive Shopping Centre has sold for $13.5 million in what is only the third Perth neighbourhood centre deal transacted this year.
Located in the earmarked growth hub of Seville Grove, the 4,850sqm centre comprises a full line Coles Supermarket, Liquorland and 11 other convenience-oriented specialty shops. The centre also has scope for future development.
The property has been acquired by a syndicate managed by Australasian Property Investments Limited (APiL) who was three times oversubscribed for the acquisition within hours of the offering being put to investors.
APiL Managing Director, Peter Hughes said: “We are delighted with this acquisition and Champion Drive Shopping Centre, which is underpinned by a strongly performing full line Coles supermarket, typifies the outstanding investment fundamentals demonstrated by well-located neighbourhood shopping centres in Perth’s core residential areas. APiL has bought Champion Drive shopping centre on the back of successfully acquiring Carine Glades shopping centre in 2014 for $24.5million.
He added: “Champion Drive represents APiL’s 20th property investment trust, bringing the total value of property acquisitions to more than $600 million.”
CBRE's Andrew Woodley-Page said neighbourhood shopping centres continued to be highly coveted property investment assets.
“Record low interest rates, combined with a lack of yielding investment opportunities and off peak fundamentals being experienced in other commercial property sub-markets, have focused even more attention on retail property investments,” Mr Woodley-Page said.
“The seller, an undisclosed group of private investors who bought the property in 2009 and the disposition represents a strategic exit with the multiple owners looking to recycle capital.”
Mr Woodley-Page went on to say the centre was an excellent performer with ongoing population growth in the primary catchment and strong cash flow growth.
“I’m exceptionally pleased with the result achieved for my client and I’m also thrilled to have provided an excellent investment opportunity to APiL,” Mr Woodley-Page said.
The centre will be managed post settlement by CBRE.
For Australian/international news or global stories, follow us on Twitter. CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com. About CBRE Group, Inc.
