Woolworths has listed Banksia Grove shopping centre for sale, representing a circa $35 million investment opportunity in WA’s burgeoning City of Wanneroo. Woolworths occupy 3,850m2 as the anchor tenant, for term of 12-years, in the newly constructed, contemporary centre.
The Banksia Grove complex has a site area of 23,419m2 and leasable space of 5,721m2, occupied by 14 specialty tenants, including BWS, Plus Fitness, Coffee Club, Wokinabox and Terry White Chemmart. The centre, which opened towards the end of 2017, also features a town square, a children’s playground and parking for about 280 cars.
Located on Joondalup Drive, the Banksia Grove property is around 25km north of the Perth CBD and is situated in a high growth region, with 3.95% population growth per annum forecast and residential and commercial development continuing in the area.
The centre is located within the master-planned community of Banksia Grove, a $2 billion urban development initiative with the Western Australian government.
CBRE’s Richard Cash and Anthony Del Borrello have been appointed to market the property on behalf of Woolworths via an International Expressions of Interest campaign, closing on March 21, 2019.
Del Borrello noted, “We anticipate significant interest from a range of local, national and offshore investors due to the income security of anchor tenant Woolworths and income growth offered through the specialty tenants.”
“The security of tenure provided by ASX listed anchor tenant Woolworths’ long-term lease and the depreciation benefits of a newly built centre will make this a highly sought-after asset,” Borrello said.
Richard Cash said that he expected the demand for neighbourhood shopping centres to continue in 2019, after eight transactions last year with an average yield of 6.33%.
“The last newly-built Woolworths anchored centre to come to the market in WA, Woolworths Aveley sold at a yield of 5.74%to a private east coast investor in August 2018,” Cash said.
