Becoming the sixth neighbourhood centre to trade in Western Australian in the past 12 months, Australian Unity Diversified Property Fund has divested Woodvale Boulevard to a local syndicator.
Located 19 km north of the Perth CBD, the centre is anchored by a strong performing Woolworths supermarket and supported by a diverse mix of 25 daily needs specialty retailers.
JLL’s Nick Willis, Sam Hatcher, Nigel Freshwater and Sean Flynn sold Woodvale Boulevard via a strongly contested on-market Expressions of Interest campaign on behalf of Australian Unity Diversified Property Fund.
Willis said “Woodvale Boulevard Shopping Centre presented the first opportunity in 12 years to acquire the dominate neighbourhood centre in the affluent northern Perth corridor. The highly publicised on-market campaign received significant interest with over 180 enquiries resulting in eight formal offers.”
Woodvale Boulevard Shopping Centre is set on a 27,200m2 land holding located in an affluent residential catchment, with average household income sitting at $121,446, 6.2% above the Western Australian Average.
Woodvale Boulevard Shopping Centre is anchored by a strong performing Woolworths supermarket and supported by 25 specialty retailers
Hatcher said “Western Australian’s retail investment market has shown resilience despite wider macro-economic volatility affecting other markets. Transaction numbers in the first half of the year were nearly double the five-year historical average reflective of investor interest into the state. Historically Western Australian neighbourhood centre yields have traded at a 75-bps spread to its East Coast counterparts.”
The Western Australian economy has gone from strength to strength through the pandemic and post. Strong economic fundamentals have resulted in a robust labour market, strong state final demand and positive retail spending growth.
Woodvale Boulevard, WA
Willis added “With the cost of capital significantly rising in recent months, investors return hurdles have been impacted resulting in an increase in demand for higher yielding assets. Given the historical yield spread, Western Australia has directly benefitted from this as investors are able to acquire high quality assets at more suitable yields.”
The Western Australian retail market has seen significant investment since June 2022, with the sale of Woodvale Boulevard Shopping Centre, HomeCo Midland, a 50% interest in Rockingham Shopping Centre, Stockland Riverton and other assets totalling more than $880 million.
