Australian-based investment and funds management company Realside Property has purchased Perth’s Maddington Central for $107 million in its first retail acquisition. CBRE’s Simon Rooney and James Douglas managed the off-market sale campaign on behalf of Vicinity Centres.
Located 18km south-east of the Perth CBD, the 27,661m2 convenience based sub-regional shopping centre is anchored by Coles, Woolworths and Kmart, which contribute $138.1 million to the centre’s annual turnover of $208.7 million.
Linda Rudd, Realside Chief Executive Officer, said: “Realside is excited to finalise the acquisition of Maddington Central, a shopping centre that we have particularly coveted given the significant mixed-used opportunity that the property provides. This is our first retail acquisition and has created a key opportunity to diversify and expand on our existing office and industrial portfolio. It provides Realside the ability to bring together the collective experience of our team to deliver an improved retail offering.”
“Realside will work with Sirona Urban, who are appointed as asset and development manager, to assist in delivering our vision for the property to unlock a revitalised retail and community precinct,” said Rudd.
Maddington Central is a convenience based sub-regional shopping centre anchored by Coles, Woolworths and Kmart
Simon Rooney, CBRE’s Head of Retail Capital Markets – Pacific, noted, “The West Australian retail market continues to be a focus for investors given the state’s solid economic fundamentals, which have translated into robust retail asset performance.”
Total transaction levels from 2023 to date reaching $1.2 billion, with CBRE being directly responsible for 85% or more than $1.0 billion of transactions.
“In the case of Maddington, there is significant mixed-use development potential for the site subject to the relevant approvals given the underutilised 13.16ha landholding including an adjoining separately titled vacant land component of 1.56ha favourably zoned ‘regional centre’, providing optionality to the incoming purchaser.”
The centre benefits from an extensive and growing main trade area population of 219,336, approximately double the benchmark national trade area population for a sub-regional shopping centre.
The main trade area total retail expenditure level is currently estimated at $4.4 billion and is projected to increase at an average rate of 3.2% to $7.9 billion by 2041. The largest spending sector is supermarkets at $1.13 billion, representing 25.6% of the total retail spending market.
The centre is expected to further benefit from committed infrastructure and urban renewal projects within the trade area, including an $11 billion investment in the WA Government’s Metronet rail infrastructure.
