This article is from the Australian Property Journal archive
A Woolworths-anchored neighbourhood shopping centre north of Perth that has just been completed by the supermarket giant’s construction arm Fabcot has hit the market.
Previously a Bunnings Warehouse, the brand-new 6,466 sqm neighbourhood shopping centre in Clarkson, 35 kilometres from the CBD, is anchored by a 4,207 sqm Woolworths and is supported by The Reject Shop, Revo Fitness, pharmacy, a kiosk and five other specialty tenants.
It occupies a strategic 26,604 sqm corner site adjacent to Ocean Keys Shopping Centre and has 312 on-grade car parking spaces and a new direct-to-boot service.
Colliers’ James Wilson and Richard Cash are marketing the centre.
“This is an extremely rare opportunity to purchase a recently developed Woolworths anchored shopping centre in an established and growing catchment in Perth’s northern growth corridor,” Cash said.
Cash is expecting interest from a “wide pool of buyers”.
Wilson said the neighbourhood shopping centre sector has been “incredibly resilient”, with domestic and offshore private capital targeting brand-new centres in high-growth metropolitan locations comparable to Clarkson.
“Neighbourhood shopping centres are often developed in new or emerging communities, whereas Woolworths Clarkson has been built in an established locale directly catering to the existing demand in the market.”
The main trade area population is currently estimated at 81,275 residents and is forecast to grow to 95,025 residents by 2041. Woolworths Clarkson is the only freestanding, full-line supermarket within the primary sector that consists of 22,263 residents. No opportunities for a new full-line supermarket have been identified in the primary sector due to the established nature of the catchment.
Supermarket sales are the largest retail spending group in the MTA, estimated at $487.8 million in 2023 and accounting for 25.4% of total expenditure. This is expected to grow to $902.9 million by 2041, an average growth rate of 3.5 per cent per annum.
Expressions of interest close on Wednesday, 10th April.
Woolworths sold a neighbourhood shopping centre in the Illawarra-Shoalhaven region in September to a Victorian investor for $40 million, on a fully leased yield of 5.43%. Fabcot completed the Woolworths Bomaderry centre in 2020.
Fabcot’s latest offering comes to the market just as Coles Group has listed the 2021-completed Andergrove Village Shopping Centre in Queensland’s Mackay for sale.
Andergrove Village is anchored by a 10-year lease to Coles, which is the largest and top-performing supermarket in the main trade area, and which occupies 84% of the centre’s gross lettable area. It is positioned on a 2.437-hectare landholding and includes a 4,800 sqm vacant parcel of land.
Coles Group has just offloaded the recently constructed Huntlee Shopping Centre in the Hunter Region of NSW for $33 million to a Sydney-based private investor, and closed 2023 with the divestment of Flagstone Village neighbourhood shopping centre in south east Queensland for more than $26 million to a high-net-worth private investor.
