Appetite for retail investments sparks Trinity Village sale
Strong demand for retail investments has sparked the move to sell Trinity Village – a Coles-anchored neighbourhood shopping centre in Perth’s expanding northern suburbs.
27 Feb 2019
A group of Perth-based developers have appointed CBRE to market for sale the recently completed shopping centre, located in Alkimos – approximately 40km north-west of Perth.
The neighbourhood centre is anchored by a full-line Coles supermarket (3,765sqm), with a 15-year lease expiring in February 2033.
Completed in 2018, the centre is located on a 2.16ha site and comprises 16 specialty retailers, including F45 Training, Juniper Medical Centre and a Shell petrol station. The centre generates a fully leased net income of circa $2.2 million.
Located opposite the new Butler secondary school, the highly exposed corner site has four street frontages with multiple ingress/egress points - providing excellent exposure to Marmion Avenue. The centre was developed to cater to the growing north west suburbs of Perth where the sought-after coastal lifestyle has attracted some of Australia’s largest developers, including Stockland, Peet and Cedar Woods.
CBRE’s Richard Cash and Anthony Del Borrello have been appointed to market the centre for sale via an International Expressions of Interest campaign closing April 4 at 2pm (AWST).
Mr Cash said the sale would capitalise on strengthening investor interest in Perth’s retail investment market.
“Neighbourhood shopping centres anchored by strong national tenants, such as Coles and Woolworths, continue to be highly sought after by investors due to the heavy reliance on non-discretionary spend and insulation from online sales,” Mr Cash said.
Mr Del Borrello said the sale campaign followed strong recent activity in WA’s shopping centre sector.
“Evidencing strengthening interest in the sector, there was an increase from three neighbourhood transactions in 2017 to 12 in 2018, with notable sales including Flinders Square for $39.5 million at a 6% yield and Woolworths Aveley for $26.9 million at a 5.75% yield,” Mr Del Borrello said.
“The current strong yields are reflective of a flight to secure investments that are weighted by strong ASX listed tenants, with the potential for future growth of income in line with performance.”
“The current owners of Trinity Village are looking capitalise on the current yields on offer for neighbourhood shopping centres, seeing this as an opportune time to divest the asset and move into another development.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.