Overseas buyer pays $22.75 million for Peet's Perth neighbourhood shopping centre on yield of 8%
An offshore private investor has paid $22.75 million to acquire the Carramar Village Shopping Centre north of Perth sold by property developer Peet.
The sale of the neighbourhood shopping centre was negotiated by CBRE’s Andrew Woodley-Page and Peter Agostino with the sale price reflecting an initial yield of 8.06%.
The shopping centre is located on the corne of Joondalup Drive & Cheriton Drive in Carramar, 27km north of Perth in the City of Wanneroo – one of Australia’s fastest growing municipalities.
Completed in 2009, Carramar Village comprises a gross lettable area of 5,429 square metres and parking for around 300 vehicles.
It was sold with a long term lease to Woolworths, expiring in 2024, and includes 14 specialty stores among them Bakers Delight, Priceline Pharmacy and Jetts Fitness.
It is located within Peet’s Carramar Golf Course Estate – a community of around 3,000 households that has been created over the past decade and is now almost completely sold out.
Overseas buyers have tended to focus on buying up Australian hotels and offices in CBD locations, but high yields are on offer for retail assets.
Last week, Darwin-based private investor Cenfurn Investments, associated with the Koch Family, paid $14 million to acquire The Zone Retail Centre and an adjoining retail development site in Darwin on a yield of around 11%.
The buyer of the Carramar centre was advised by Perth based property investment advisors, API Hughes.
API Hughes managing director Peter Hughes says Carramar Village presented itself as a sound investment opportunity for their client “as it has a strong trading Woolworths together with the right mix of convenience service orientated specialty tenant”.
“Retail centres are very much on our buying radar as higher yields and lower interest rates make this an ideal time for acquiring strong performing centres,” Hughes adds.
CBRE Perth managing director, Peter Agostino says the sale confirms there is strong investor appetite for retail property.
CBRE negotiated the sale of the WA centres Wanneroo Central and Stirling Central with further shopping centre transactions in the final stages of negotiation.
“We received strong interest in the campaign, particularly from local private investors and syndicators seeking a secure investment, with the centre’s attractive rent review structures providing assured income growth,” Agostino says.
In May the privately owned Perron Group agreed to pay a post-GFC record of $690.4 million to acquire a 50% share in a portfolio of three Centro flagship regional shopping centres.