Charter Hall Retail REIT sells $16.1m centre in WA's revived top end

Carnarvon Central has transacted in an off-market sale for $16,100,000 to an Adelaide-based syndicator.

Located on a high-exposure 1.63ha site in the heart of coastal town, the neighbourhood shopping centre is anchored by Woolworths and has 15 specialty stores and four offices – including a BWS, Amcal Pharmacy and Smokemart.

Situated 900km north of Perth in the Gascoyne region – close to the holiday and mining hot spots – the centre benefits from the region’s mining and tourism industries. 

CBRE’s Anthony Del Borrello and Richard Cash brokered the deal on behalf of the vendor, Charter Hall Retail REIT. 

Mr Del Borrello said; “With over 65% of the centre’s current net income derived from ASX listed Woolworths and featuring a secure 7.70 year WALE (by income), the purchaser was attracted to the strong investment fundamentals of the property.”

“Mining sector recovery has seen an uptick in demand for assets in WA’s north-west, which has resulted in additional activity in many of the towns in the state’s top end – population growth and infrastructure spend has also positively impacted the region’s shopping centres,” Mr Del Borrello continued.  

“The sale reinforces a growing confidence in WA’s north-west, which is being spurred by improved mining conditions and is set to see workers drawn back into the region.” 

Mr Cash commented that the asset was the second neighbourhood shopping centre in WA to settle this January, following the sale of Woolworths Greenfields, which was acquired by Primewest for $32,000,000 at an approximate yield of 5.89%.

“The convenience and non-discretionary nature of neighbourhood shopping centres has insulated these assets from e-commerce and local conditions, ensuring that the demand for these assets has remained very strong in WA,” Mr Cash added.

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