Anchor tenancy to Woolworths and Kelmscott town centre site to attract strong interest
The sale of Kelmscott Plaza Shopping Centre, the first neighbourhood centre to hit the Perth market in 2018, is expected to generate strong buying interest in the city’s tightly-held retail sector.
The 5,077sqm shopping centre, which occupies a prime site on Albany Highway in Kelmscott, and services a fast-growing residential area, is being taken to market through an expression of interest campaign by Colliers International and CBRE.
The established centre is anchored by a 20-year lease (plus renewal options) to a Woolworths supermarket and includes one mini-major tenant—Wizard Pharmacy, 14 specialty tenancies, one kiosk, 278 parking bays and a freestanding Red Rooster restaurant.
“With secure income from a multi-national backed supermarket and a proven mix of specialty operators, neighbourhood centres are fiercely contested assets and there will be strong interest in the sale of Kelmscott Plaza Shopping Centre,” Colliers International’s Ben Tana said.
“Because this asset class captures non-discretionary spending, we are expecting local, national and offshore interest."
Neighbourhood shopping centres have been a resilient sector in WA’s retail market with figures from the Property Council of Australia showing the sector had a vacancy of 4.4 per cent in 2017, up slightly from 4.1 per cent in 2016.
Kelmscott Plaza occupies a 17,442sqm town centre site that also has frontage to Denny Avenue, one of Kelmscott’s busiest thoroughfares, as well as Davis Road and Streich Avenue.
It has a weighted average lease expiry of 8.18 years (by area) and the Woolworths tenancy accounts for close to 40 per cent of the centre’s income.
CBRE’s Richard Cash said: “Transport and planning changes in Kelmscott, which is ranked as a district centre under the State Government’s activity centre hierarchy, are also expected to enhance the shopping centre’s integration into the town centre and the nearby train station."
As part of long-term plans to redevelop the Kelmscott town centre, the Metropolitan Redevelopment Authority is supporting plans in the METRONET project, a transport blueprint, to relocate the Denny Avenue level crossing.
Expressions of interest for the shopping centre, at 2889 Albany Highway, will close on March 22.