Sirona Capital sells Margaret River's Village mall for $20 million
Investor Sirona Capital has made a $2 million profit over four years by selling a Margaret River mall for $20 million to a syndicate of investors led by Perdaman Capital.
The sale of the Woolworths-anchored shopping centre is on a high passing yield of 7.2 per cent, but represents an improvement in the asset’s underlying value compared with the 9.3 per cent yield on which Sirona purchased it from SCA Property Group in 2015.
“Since acquiring the centre through an investment fund in March 2015, Sirona has repositioned it as a retail destination for Margaret River residents and visitors, while also attracting new tenants, increasing specialty retail occupancy from less than 45 per cent to almost 90 per cent,” Sirona managing director Matthew McNeilly said.
“One of our long-term goals has been for The Village at Margaret River to make an important contribution to the outlook for all retailers in Margaret River and we believe we’ve achieved that.”
WA is still battling higher unemployment than the east coast capitals and its residential market is still yet to find its bottom. Home values fell 7.7 per cent over the year to March, bringing the total decline over the past five years to 17.4 per cent, CoreLogic figures earlier this week showed.
Sirona put the 5706sq m mall on the market in September, in a campaign managed by Colliers and CBRE.
The centre was purpose-built for Woolworths in 2013 and sits on a 7233sq m site on the corner of Town View Terrace and Wilmott Avenue.
Nine offers were received for the centre, CBRE director retail investments Richard Cash said.
“This transaction conveyed the continued demand for WA regional shopping centres with long leases to anchor tenants,” Mr Cash said.
Colliers International director retail investment services, Ben Tana, said demand was meeting the increased supply of shopping centres on the market.
“There is no doubt that there has been an increase in the number of shopping centres for sale, however, that supply has been met by sufficient demand from interstate and offshore buyers and more recently we are also seeing local syndicators transact,” he said.
