This article is from the Australian Property Journal archive
A COLES supermarket anchored shopping centre in north east Perth has sold for $19.42 million by Knight Frank on a yield of 8.55%.
The sale of the Mundaring Village Shopping Centre was negotiated by Knight Frank directors Phil O’Donovan and John Corbett on behalf of vendor Viento Property Ltd.
A local syndicate of high net worth individuals purchased the centre, which is located approximately 25km from the Perth CBD.
O’Donovan said the sale price reflects the strong interest in retail assets, which are to some degree viewed as a safe bet in the current investment climate.
“This sale shows an impressive yield in the current interest rate environment and there is scope for the purchasing syndicate to realise capital growth going forward,” he added.
Located at 7295 Great Eastern Highway, Mundaring Village Shopping Centre is a modern neighbourhood centre housing approximately 20 speciality retailers including Australia Post, Flight Centre, Video Ezy and a free standing KFC. It has a gross lettable area of 5,737 sqm and occupies a 2.103 hectare site, with 240 onsite car parks.
Viento Property bought the property six years ago for $14.4 million.
Viento managing director Robert Nichevich said this is a great result for investors in the syndicate given the state of the property market over the last 18 months.
“We will use the majority of the proceeds to repay debt, reducing the loan to value ratio to 42%,” he added.
The Viento Diversified Property Fund has also sold the Elermore Shopping Centre to Bamm Group for $8.35 million on a passing yield of 10.0%.
The neighbourhood centre at Elermore Vale, Newcastle, has 14 tenancies and a net lettable floor area of 3,873 sqm.
Net proceeds of the sale will be used to reduce the LVR on current borrowings. Viento has extended close date for the $7.0 million issue of Convertible Preference Units until 31 August 2010. The fund owns 10 direct property assets valued at $128.2 million and an allocation in the Southern River residential subdivision, Western Australia, valued at $2.5 million.
Australian Property Journal
