A Chinese investor has made their first foray into the Perth property market, securing Kelmscott Plaza in the city’s south-eastern suburbs for $19 million.
Colliers International’s Ben Tana negotiated the sale of the Woolworths-anchored centre on behalf of Australia Pacific. The centre was sold with an 8.18-year WALE – reflecting a yield of 6.42%.
The expressions of interest campaign resulted in more than 110 buyer enquiries from local, national and offshore investors – leading to six formal offers and three shortlisted buyers, before finally transacting to an offshore Chinese investor.
Mr Tana said WA’s retail market was well-known as a stronghold for Singaporean buyers and the entry of a new Chinese investor reflects confidence in WA’s capacity to deliver strong investment returns.
“WA is experiencing improved market conditions because of an increase in domestic and offshore interest, combined with a lack of quality stock on offer,” Mr Tana said.
“In the 2017-18 financial year, Colliers International received twice as many offers for ‘on market’ retail campaigns compared with the previous year, and this added level of investor competition has resulted in a sharpening of shopping centre yields.
“The focus on WA was also evident in the high profile transactions of Subiaco Square and Riverton Coles, which were purchased by high net worth investors from Victoria.
“Meanwhile, the sale of Kelmscott Plaza was secured by the introduction of a Chinese buyer.”