This article is from the Australian Property Journal archive
US giant Barings has confirmed the acquisition of Joondalup Square in Perth, in Australia’s largest large format retail transaction of 2024.
Exclusively reported by Australian Property Journal last week, Barings has paid $74 million to buy the centre from Arise Developments, in a deal negotiated by Colliers’ James Wilson and Cygnet West’s Wayne Lawrence.
This transaction is a milestone for Barings and is the last asset acquired for its 4th Australia value add strategy since series inception in 2010, paving the way for its 5th Australia value add strategy in 2025.
“We are delighted to acquire our first high-quality large format retail asset in Perth in the heart of the Joondalup retail precinct. We are attracted to the industrial-like characteristics of large land area, great access and visibility, buildings not over capitalised, quality tenants paying sustainable rent, and additional development potential,” Barings capital transactions managing director Gareth Price said.
Senior director portfolio management added, ““We are pleased to achieve this important milestone for our investors of the Strategy being fully invested. As a relatively sector agnostic investor, in the current market dynamics, we are continuing to see relative value opportunities across the major markets that our successor value add strategy will seek to take advantage of in 2025.”
Lawrence said it is an absolute thrill to be capping off 2024 with the largest national LFR transaction of the year,
Whilst Wilson added that Joondalup Square was the first metropolitan LFR Centre sold in 2024, as reflected by over $700 million in value of unsatisfied capital targeting the tightly held retail sub-sector.
Located 26km north of Perth’s CBD, the centre comprises 13,216 sqm of gross leased area across three freestanding buildings with a combined total site area of 27,598 sqm, is 100% leased and has a WALE of 6.1 years (by income).
The centre is leased to 19 tenants including Amart Furniture, Forty Winks, Beacon Lighting, Bedshed, Trek, Anytime Fitness, PetO, and Barbeques Galore.
Joondalup Square is only the second capital city LFR centre to be publicly marketed in 2024, and Western Australia has experienced only two LFR deals since the beginning of 2023.
WA retail market the star performer
WA’s retail property market is finishing the year on a high, with GPT acquiring 50% stake in two shopping centres from Perron for $482 million.
This is in addition to some $350 million worth of commercial real estate transactions are set to close in Western Australia by the end of this year. As exclusively reported by Australian Property Journal in recent weeks, the market was boosted with Andrew Roberts’ RF Corval selling 66 St Georges Terrace to Perth-based Oceania Capital for $75 million.
That office sale was quickly followed by the ISPT Retail Australia Property Trust (IRAPT) acquiring the Woolworths Clarkson, located 35 kilometres north of Perth in the City of Wanneroo, for $36 million. Colliers’ James Wilson also handled this sale with colleague Richard Cash.
According to Colliers investment volumes in Western Australia have reached $1.3 billion across the office, industrial, and retail sectors in 2024 year-to-date.
Notably, 10% of all sales nationally were in Western Australia, the report showed – the highest proportion of capital represented by the state in the past decade.
Major deals in the state this year saw Vicinity Centres nab a 50% stake in Lakeside Joondalup for $420 million – at a hefty discount to the asset’s peak value – while Hawaiian took full control of Claremont Quarter.
JY Group also paid $195 million for a half-stake in Westfield Whitford City from Singaporean sovereign wealth fund GIC after Scentre Group opted against taking full control of the Perth asset.
