NEWS

Flinders Square Shopping Centre sells for $39.5 million

Flinders Square Shopping Centre, a neighbourhood centre just north of Perth’s CBD, sold for $39.5 million.

The Yokine asset, considered one of Perth’s trophy neighbourhood shopping centres, was sold by Colliers International’s Ben Tana and James Wilson who said strong interest from domestic and offshore buyers emerged during the campaign.

The centre was purchased by WA-based property investment group APIL and the transaction reflected a yield of 6.1 per cent.

Mr Tana, Colliers International’s Director Retail Investment Services, said multiple buyers with mandates for retail investments were canvassing the WA market.

“The strength of Flinders Square’s retail performance, combined with its strong underlying land value, resulted in an exceptional level of campaign enquiry, with the quality of the bidding reflected by three bids made at a yield under 6.2 per cent,” Mr Tana said.

“Located on an accessible 2.02 hectare site in Yokine’s commercial centre, this fully occupied asset services an established catchment in Perth’s metropolitan area and at just five kilometres from the CBD, has an underlying land value that offers future redevelopment potential.”

While a WA syndicator emerged as the successful bidder, Mr Tana said eastern states buyers contesting the sale believed WA’s retail market was showing positive signs of a recovery, and, they were attracted to the comparatively more attractive returns, especially for centres close to Perth’s CBD. 

“For their part, offshore buyers continue to have strong interest in Western Australian retail investment because they are looking to achieve higher returns,” he said.

“There’s also a high level of awareness that the non-discretionary spending captured in neighbourhood shopping centres, makes it one of the most resilient sectors in WA’s retail market.”  

The 6,000sqm shopping centre has one mini-major—City Farmers, a stable mix of 18 specialty stores and 389 car bays.

James Wilson, Colliers International’s National Director of Retail Investments, said investor appetite for neighbourhood shopping centres shows no signs of abating.

“Investors continue to value the security offered through neighbourhood shopping centres, due to their defensive nature as an investment. With the majority of the income derived through non-discretionary anchor tenants they present an attractive investment opportunity, with speciality rental increases complementing the stability offered,” Mr Wilson said.

Flinders Square Shopping Centre has a weighted lease expiry of 5.78 years (by area).

Australasian Property Investments (APIL) Director Helen Lassam said Flinders Square addressed their key acquisition mandate of being a strategically located shopping centre with long-term growth potential.

Flinders Square Shopping Centre sold


For more information please contact
Share this Page
Close
Saved Properties
Remove All
You have no saved properties. Click the 'save' button associated with a property listing to see it displayed here.