Western suburbs retail asset to spark investor interest
The sale of one of only a handful of neighbourhood shopping centres in Perth’s premium western suburbs is set to jumpstart the year for retail investors, with buyer demand continuing to outstrip available assets in the market.
The Captain Stirling Shopping Centre, located on Stirling Highway in the blue chip suburb of Nedlands, has been sent to market seeking expressions of interest in a campaign expected to generate offers from local and offshore investors.
The Centre is being offered for sale through Colliers International.
Occupying prime position on the corner of Stirling Highway and Florence Road, adjacent to the popular Captain Stirling Hotel, the 1,613sq m (NLA) Centre is anchored by a 721sq m IGA Supermarket and is home to a further 11 specialty stores including a pharmacy, travel agency, newsagency and Bakers Delight.
The Captain Stirling Shopping Centre sits on a 4,663sq m site, and with a plot ratio of just 0.75 in its current state offers significant potential for further development, subject to council approval.
Colliers International Manager Retail Investment Services Ben Tana said the Centre would be very well received by the market, with the neighbourhood shopping centre sector an outstanding performer in WA over the past two years.
“Sales activity in that neighbourhood sector has been very strong, with WA’s population growth and retail sector performance driving increased interest from private investors, institutional and foreign buyers for suburban centres,” he said.
“However, these centres remain tightly held, which has kept a lid on the number of deals done. Of particular interest to investors have been older centres with redevelopment and expansion opportunities, so a centre like this one with an established and affluent demographic and that potential for redevelopment represents a rare opportunity in this market.”
The Centre’s zoning of Retail Shopping covers a broad range of potential uses, including consulting rooms, medical centre and offices.
Mr Tana said the chance to secure a quality established retail asset in the western suburbs was expected to generate considerable competitive tension among investors.
“Colliers International has led the market in WA in transacting deals in this sector over the past two years, and our experience in dealing with these assets has clearly demonstrated the depth and geographical spread of investor interest that exists,” he said.
“We expect that buyer appetite to be reflected in the level of enquiry for this Centre.”
The Captain Stirling Shopping Centre is for sale by expressions of interest.