A shopping centre in Perth’s southern suburbs has hit the market with a price tag of $22 million.
Built in 2015, Bertram Central, situated at the corner of Champion Drive and Hero Crescent in Bertram, features three main buildings, which comprise of a mix of speciality stores and an IGA supermarket with a 15 year lease in place.
The 9,196-square-metre centre has a fully leased net income of about $1,425,000 per annum, as well as a weighted average lease expiry of 8.65 years.
It is owned by Piggott Property Holdings, a Western Australia-based private investor group.
Savills Australia’s Barney Dear and Chas Moore are marketing the property, with Mr Dear saying the retail complex’s key drawcard is its prime location in an area of strong predicted growth surrounded by residential construction.
“We expect strong interest from local, interstate and offshore investors,” he said.
“The attainable price point, non-discretionary nature and long lease profile of neighbourhood centres continue to attract investors to this asset class.”
The tenancy mix includes a central building with the IGA supermarket, along with a central mall area and eight surrounding specialty stores.
The other two buildings are home to a liquor store, fast food shop, medical centre and gymnasium.
Mr Dear said the centre was well-positioned to benefit from its established and growing trade area.
“The centre provides convenient access from Protector Way and Champion Drive and allows visitors and shoppers to take advantage of the onsite parking that is provided for up to 105 vehicles, along with additional street parking for approximately 50 cars,” he said.
The centre, located 32 kilometres south of Perth’s CBD within the City of Kwinana, is close to major arterial roads, including Thomas and Mortimer Roads.
It is not the only low-rise shopping centre testing the Australian retail market.
In Sydney’s west, Green Valley Shopping Village in Green Valley is also on the market for more than $15 million. It is being listed for the first time in more than 50 years with CBRE’s Thomas Mosca, Peter Vines and Frank Oliveri.
Shopping centre sales volume nationally clocked up more than $5.3 billion in the 12 months to March 2018 – up 40 per cent from about $3.8 billion the year before, according to m3 Property’s latest National Shopping Centre Report.
The biggest buyers of shopping centres in the same period were unlisted funds, accounting for half of all purchases. They were followed by foreign investors, snapping up 14 per cent of malls.
Centre owners are projected to fine-tune their retail mix, as they continue to battle challenges including changing consumer preferences, weak consumer sentiment and the rise of Amazon in Australia, the report noted.
Expressions of interest for Bertram Central close August 16.