Perth $34m mall sale the largest for 2020
Carramar Village was offered for sale by family-owned Canute Investments.

Perth $34m mall sale the largest for 2020

Adelaide-based fund manager Red Wealth has acquired its second Woolworths-anchored West Australian mall this year, after paying $33.5 million for Carramar Village in Perth’s northern suburbs.

The 5353-square-metre shopping centre on the north-western corner of Joondalup and Cheriton drives in Carramar sold on a yield of 6.2 per cent. According to selling agents CBRE, it was the largest shopping centre sale in Perth so far this year.

The neighbourhood mall, on a 2.08-hectare site, was part of a $140 million portfolio of retail, commercial and residential properties put up for sale a year ago by Canute Global Investments, owned by Perth-based Arthur Marshall, the founder of British logistics firm Canute Group.

Carramar Village is anchored by Woolworths and features 17 specialty stores. It last traded for $22.75 million in 2012, when Canute acquired it from developer Peet.

The new owner, Red Wealth, was founded in 2002 by former mortgage broker Adrian Rivish.

According to its website, Red Wealth has more than $250 million of property under management, including $190 million in its diversified property fund, which owns neighbourhood shopping centres.

Its other assets are all retail properties, including the Woolworths-anchored Carnarvon Central neighbourhood shopping centre in regional WA, which Red Wealth bought in February for $16.1 million from ASX-listed Charter Hall Retail REIT.

“We believe in the resilience of the neighbourhood shopping centre sector, given the heavy reliance-of-income generated from strong-performing anchor tenants such as Coles and Woolworths and other non-discretionary retail tenants,” said Red Wealth director Benjamin Fusco.

“Carramar Village was no exception, with a dominant Woolworths supermarket, diversified tenant mix, development upside and a strong primary trade area.” he said.

CBRE’s Anthony Del Borrello and Richard Cash negotiated the sale on behalf of Canute Global Investments.

“Negotiations were conducted throughout a very challenging period in Australia due to COVID-19, with restrictions and regulations changing at a rapid rate,” Mr Del Borrello said.

He said demand for non-discretionary and convenience neighbourhood shopping centres continued to be strong, thanks to the defensive and recession-proof nature of the asset class.

“We’ve seen additional pent-up demand, due to the lack of quality assets that have come to market this year because of the global pandemic,” he said.

In December, Canute sold two Queensland malls – Ormeau Shopping Centre and Logan Village Shopping Centre – for a combined $45 million to Clarence Property.