This article is from the Australian Property Journal archive
PROMINENT Western Australian syndicator Baron Vanilla Management, spearheaded by director Miles Ashton, has spent $26 million buying north Perth retail centre Drovers Marketplace.
Located at 1387 Wanneroo Road, the fully occupied centre comprises 16,388 sqm, anchored by Dan Murphy’s and a subterranean lower level Drovers Self Storage facility with 343 car parking bays. Other major lease covenants include Surge Fitness, a childcare and after-school care centre, Spur Steak & Grill, Good Samaritan Industries, and an indoor Swim School WA.
The off-market deal was brokered by Ray White Commercial WA agents Michael Milne and Brett Wilkins on behalf of builder and developer Ray Jackson.
The retail centre is anchored by a large Dan Murphy’s and a major subterranean lower-level Drovers Self Storage facility.
“A 1,500sqm Dan Murphy’s liquor outlet is an obvious blue chip covenant that underpins this centre,” Milne said, adding that the asset presents as a unique ‘hybrid’ large format retail centre, due to its versatile range of draw cards including a swim school, child care centre, fitness, steakhouse restaurant and a major basement level self-storage facility.
The centre’s net income at settlement was $2.1 million per year, representing an 8% yield.
Ashton said the acquisition was attractive for Baron Vanilla Management due to its strong fundamentals, with its high exposure location positioned on the major intersection of high traffic volume Wanneroo Road and Joondalup Drive and the diverse tenancy mix providing income security and strong income generation.
This is the sixth property syndicate established under the Baron Vanilla banner since 2021 and the 22nd property syndicate to be established by the group, growing combined assets under management to in excess of $200 million.
