This article is from the Australian Property Journal archive
WOOLWORTHS is offering two of its Western Australia neighbourhood shopping centres to the market, both anchored by its supermarkets and BWS liquor stores, in residential estates within Wandina and Aveley.
The Woolworths Seacrest at 75 Barrett Drive, five kilometres out of the Geraldton CBD, has a total lettable area of 4,713 sqm, including the catchment’s only full-line supermarket, and also has seven specialty tenancies and a pad site medical centre.
It 97% leased and has an estimated fully leased net income of around $1.14 million per annum, with a 9.5-year WALE by income, and is positioned within the Seacrest Estate residential community.
Also on the market is Woolworths Aveley, 28km north-east of Perth, which is on a prominent 17,647 sqm site on the corner of Millhouse Road and Egerton Drive and has a total gross lettable area of 5,040 sqm.
The centre has a near-100% occupancy rate, in addition to Woolworths and BWS recently signing a 12-year lease, with a 9.3-year WALE by income and returns around $1.57 million net. There are nine specialty stores and it also has a pad site medical centre.
Woolworths Aveley is located in Stockland’s master-planned community of Vale Aveley.
Cushman & Wakefield’s Nick Potter, who is marketing the properties, said strong demand for modern, well located supermarket anchored centres has continued across Australia.
He expects the two Woolworths centres to generate strong interest among local, east coast and offshore investors.
“These brand-new convenience retail assets offer long-dated income with strong covenants, defensive cashflows and depreciation benefits. With the additional expected growth in local populations underpinning the asset’s growth profiles, this will attract the large national platforms, local syndicates and high net-worth individuals.”
Neighbourhood centres accounted for $175 million of the $763 million worth of retail assets that traded across Australia over the first quarter of 2018.
The $1.9 billion in transactions recorded over 2017 made for the highest proportion of centre sales by type nationally.
Potter this is expected to remain strong in 2018, as investors continue to target defensive assets such as neighbourhood centres and catchment-dominant malls.
Australian Property Journal
