This article is from the Australian Property Journal archive
A PRIVATE investor is selling the Trinity Village in Perth’s Alkimos having set a benchmark yield of 5.84% when they purchased the neighbourhood shopping centre four years ago.
This is the second time the centre is for sale in four years, after a syndicate of local developers sold it in 2019 for $34.05 million.
Colliers’ has been appointed to sell the asset located in Perth’s northern coastal growth corridor. The international expressions of interest campaign closes Wednesday 25 of October 2023 at 2:00pm (AWST).
Colliers WA chief executive Richard Cash said Trinity Village is the first modern centre to be offered to market in Western Australia this year, making it a fantastic opportunity to purchase a securely leased investment in one of Perth’s fastest growing catchment areas.
“This is an exceptional chance to acquire Trinity Village Shopping Centre, boasting a solid foundation anchored by a lengthy lease agreement with Coles, a publicly listed ASX company. The centre also features a petrol station, convenience store, and childcare centre, accompanied by a diverse range of tenants, including service providers, medical facilities, and food and beverage outlets, all contributing to a robust income growth outlook,” he added.
Located only 14km north from the satellite city of Joondalup, Trinity Village comprises a 6,081 sqm centre anchored by Coles and has 16 specialty tenants, including a Shell service station, medical centre and childcare centre.
The Alkimos – Eglinton population is anticipated to grow by 7.8% per annum between 2022 and 2031 which is significantly higher than the Greater Perth benchmark of 1.6% per annum (GapMaps).
Cash said transactional activity in the sector is building as evidenced by the Australian Unity Diversified Property Fund’s recent sale of the Woodvale Boulevard shopping centre to a local syndicator for $36.5 million after putting the property on the market earlier this year.
Woodvale Boulevard was the sixth neighbourhood centre to trade in Western Australian in 12 months, and the third retail transaction in recent months, following Westbridge Funds Management’s divestment of Midland Central for $19.3 million to a private investor, and ARISE Developments’ Brabham sale for $31.42 million.
“The recent surge in sales volume within the Australian neighbourhood shopping centre sector underscores its remarkable resilience and its capacity to serve a broader spectrum of needs beyond its initial intent.
“Investors are increasingly attracted to the dependable cash flow generated by anchor tenants and mini major tenants, further reinforcing the sector’s robust appeal.”
Meanwhile the regional shopping centre market received a major shot in the arm this week after Hong Kong-based private investment firm PAG pounced on the Midland Gate centre for discounted price of $465 million, in Perth’s first major regional shopping centre sale this year.
PAG has acquired the Midland Gate shopping centre from the Vicinity Retail Partnership and from the Commonwealth Bank Group Super. The sale price is below the initial expectations of $600 million and the revised expectations of $500 million.
The sale of Midland Gate is Vicinity’s second major divestment in three months after it offloaded a 50% increase in the Broadmeadows Central regional shopping centre to Nikos Property Group for $134.5 million.
This transaction has injected activity back into the retail market which continues to witness a glut, including more than 400,000 sqm of retail space placed in August alone, as the gap between the expectations of buyers and sellers widens.
