This article is from the Australian Property Journal archive
ARISE Developments has offloaded a brand-new McDonald’s, KFC and 7-Eleven-anchored convenience retail complex in Perth’s north east in two tranches for $31.42 million.
Colliers agents James Wilson and Richard Cash sold Brabham Common, at 2 & 3 Marvel Entrance in Brabham, 24 kilometres from the CBD.
Wilson said over 150 enquiries were received from local, interstate and offshore investors.
“The brand-new high-quality nature of convenience retail investment generated competitive bidding, with Colliers able to extract a premium by divesting Lot 2 to a Queensland private investor and Lot 3 to Perth-based Westbridge Funds Management, as opposed to an in one line sale.”
He said the result underpins the high demand for convenience retail investments in prime locations secured by strong multinational/chain covenants.
The Centre has an 89% weighting to blue-chip multinational/chain tenants, including McDonald’s, KFC, 7-Eleven, Autobahn, Subway, Oporto and EG Fuel.
Cash said the high-quality nature of the offering and price point required a very strategic marketing campaign targeted towards west coast, east coast and offshore buyer groups.
“The purchasers were comfortable purchasing a retail investment in Western Australia, given the buoyant state economy, projected population growth and the resilient nature of the offering.”
Brabham has a high population growth rate of 6.5% per annum. Brabham Common will form part of the greater Whiteman Edge Town Centre, supported by the nearby brand-new neighbourhood shopping centre that is anchored by a Coles Supermarket and 12 specialties. Developers including Mirvac, Stockland and Peet are all active in the area, and the brand-new Whiteman Edge station will be positioned 300 metres from Brabham Common.
Westbridge will add the asset to the Westbridge Diversified Fund No.4, which head of capital transactions Simon Worth said aims to provide investors with consistent income and exposure to a portfolio of high-quality commercial assets diversified across sectors.
“This property offers a secure income profile through blue-chip non-discretionary and service-based retailers. Furthermore, the centre also benefits from its strategic placement in the Whiteman Edge town centre, a rapidly evolving growth corridor in Perth.”
