Perth neighbourhood shopping centre sells for nearly $27 million

Woolworths Group Limited has sold its Woolworths Aveley shopping centre located in Western Australia for $26,925,000 to a private investor.

The sale of Woolworths Aveley represents the sharpest initial yield ever recorded for a neighbourhood shopping centre in Western Australia over $20 million, at 5.81%, claimed selling agents Cushman & Wakefield.

Completed in 2016, Woolworths Aveley is a 4,919-square-metre centre with a near 100% occupancy rate, anchored by a full-line Woolworths supermarket with a 12 year lease term, BWS on a long-term lease, plus eight specialty stores, two kiosks, one ATM and a pad site medical centre.

The asset attracted strong levels of interest due to its location within an award-winning masterplanned residential community known as Vale Aveley, developed by Stockland.

The campaign attracted over 100 enquiries from local and off-shore investors with several offers received at the close of campaign. The terms of sale included an unconditional exchange with seven days due diligence period.

Neighbourhood shopping centres remain one of the most liquid asset classes, with 16 transactions completed during Q2 and Q3 2018 totalling more than $505 million.