Perth

WA shopping centre investment market tips $60m in first two months of 2019

Western Australia’s retail investment market is gaining momentum, with the sale of Wattle Grove Shopping Centre for $16.3 million pushing the transaction pipeline to more than $60 million in the first two months of 2019.

28 Feb 2019

Western Australia’s retail investment market is gaining momentum, with the sale of Wattle Grove Shopping Centre for $16.3 million pushing the transaction pipeline to more than $60 million in the first two months of 2019. 

CBRE’s Anthony Del Borrello and Richard Cash, jointly with Knight Frank’s Todd Schaffer, managed the sale campaign of the Aldi-anchored neighbourhood shopping centre on behalf of WA developer Devwest. Mair Property Funds acquired the property at a yield of 6.25%. 

The 3,103sqm centre, located at 338 Hale Road, Wattle Grove, is home to 12 specialty retailers, including a medical centre, pharmacy and several food & beverage tenants, as well as anchor tenant Aldi. 

CBRE’s Anthony Del Borrello said the sale was the latest in a string of shopping centre transactions in the WA market. 

“Wattle Grove Shopping Centre is the fifth retail asset to transact within just two months – indicating one of the strongest year-starts the market has experienced in some time,” Mr Del Borrello said. 

“Neighbourhood shopping centres, particularly those anchored by international retailers such as Aldi, continue to be highly sought after by investors due to the heavy reliance on non-discretionary spend and insulation from online sales.” 

Mr Cash added: “We expect to see yields for A-grade supermarkets and neighbourhood shopping centres continue to strengthen throughout 2019, fuelled by an influx of new buyers locally, nationally and globally entering the WA market.” 

Knight Frank’s Todd Schaffer said the sale campaign received significant interest from off-shore, national and local investors, which underlined the strength of the Perth retail market.
 
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated 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 www.cbre.com.

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

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.