Woolworths Aveley Shopping Centre in Perth’s north is being offered to market, providing investors with a rare opportunity to acquire a strong-performing modern neighbourhood centre in a high growth Perth suburb.
Woolworths Aveley is anchored by a high-performing full-line Woolworths supermarket plus eight shops and medical centre. Originally developed by Woolworths’ development arm Fabcot in 2016, the centre boasts a strong total centre MAT of more than $50 million and a highly secure income stream of which 57% is underpinned by Woolworths.
Stonebridge’s Justin Dowers, Philip Gartland and Kevin Tong have been exclusively appointed to sell Woolworths Aveley Shopping Centre via an Expressions of Interest campaign.
Dowers said: “Western Australia has been a hotspot for property investment with over $1.6 billion in major retail transactions in the last 12 months alone, up 52% from previous year. With WA being Australia’s fastest growing state, investors are taking a keen interest in the region which is buoyed by recent data on improving lending rates and lower inflation.
As a result of improving sentiment, we are expecting to field strong interest for Woolworths Aveley, especially with it being your ‘bread and butter’ neighbourhood centre – income secure with growth prospects,” said Dowers.
Gartland said: “Centres like Woolworths Aveley are rarely built now due to the construction cost hikes Australia has witnessed post-COVID. These costs are accentuated in WA, where the ability to source labour/sub-contractors is extremely challenging. A number of clients have told us that just building a supermarket box costs in the order of $25 million now, let alone eight specialties. These dynamics mean shrewd investors are buying these established assets well below replacement cost and that the prospects for continued rental growth remain high.”
Tong said: “The centre boasts an exceptionally attractive income profile, with 57% of its gross income secured by Woolworths. Additionally, all specialty tenants and the medical centre operate on net leases, further enhancing the income profile and reducing outgoings exposure. These safe haven fundamentals make the centre particularly attractive to Asian capital which often seeks stable, secure investments of this nature.”
Woolworths Aveley is prominently positioned on a 17,647m2 corner site within the rapidly growing City of Swan, a jurisdiction which is expected to average 2.13% p.a. population growth to 2051. During recent years, Aveley has seen substantial residential and commercial development, establishing itself as a key growth hub, with expectations of continued growth as more families and businesses are drawn to the area.
The EOI campaign for Woolworths Aveley closes Thursday 7th November 2024.
