Woolworths sells Perth mall for $27m
Supermarket giant Woolworths has sold a neighbourhood shopping centre in Perth’s outer northern suburbs for $26.925 million to a private investor, with the deal setting a new local yield benchmark of 5.8 per cent.
The 2016-built 4,919-square-metre Woolworths Aveley centre on Millhouse Road sold almost fully leased anchored by a full-line Woolworths supermarket with a 12-year lease term as well as a BWS liquor store on a long lease plus eight specialty stores.
It represents another strong result for convenience retail assets anchored or leased to Woolworths or Coles as investors chase properties that are less exposed to online retailing.
Selling agents Nick Potter, Sashi Makkapati and Billy Dent from Cushman & Wakefield said the sale was transacted on the sharpest initial yield ever recorded for a neighbourhood shopping centre in Western Australia over $20 million, with its location near Stockland’s master-planned residential community of Vale Aveley a major drawcard.
“Investor appetite remains at extremely high levels for well-performing non-discretionary convenience-based centres, and the significant levels of interest in Woolworths Aveley are testament to this trend,” Mr Potter said.
“Neighbourhood shopping centres remain one of the most liquid asset classes, with 16 transactions completed during the second and third quarters of 2018 totalling more than $505 million. Private investors also continue to be attracted to these assets given the ticket size, and are paying sharp yields,” Mr Makkapati said.
