Investor demand for neighbourhood shopping centres continued to drive retail transactions in WA during the first quarter.
Colliers completed the sale of two centres during the period, bringing the total value of retail transactions managed by the team in the state to more than $118 million.
James Wilson, head of retail middle markets Australia at Colliers, said the team recorded more than $260 million in neighbourhood shopping centre transactions nationwide in the first quarter. The activity reflects demand from private capital, syndicators and institutional investors.
“We expect competition for investment-grade retail assets to remain strong as development pipelines tighten and supply remains limited,” he said.
In WA, Colliers completed the sale of Treendale Home + Lifestyle Centre for $53 million. The firm also completed the sale of Carramar Village for $32 million and Trinity Village for $33 million. The three campaigns generated more than 550 enquiries and 23 formal offers, indicating capital seeking exposure to the state’s retail investment market.
Richard Cash, state CEO, WA, said the response to the campaigns indicates investor confidence in the state’s economic fundamentals and in neighbourhood retail centres.
“A key theme emerging from the campaigns was the depth of unsatisfied capital competing for quality neighbourhood retail assets,” he said. Buyer interest came from private investors, syndicators, family offices and institutional capital across WA and the eastern seaboard.
The assets include operating centres and projects developed in the state’s growth corridors. The retail mix includes supermarkets, fresh food, medical services and other services.
Carramar Village opened in 2009 in Perth’s northern corridor. Woolworths anchors the centre and comprises 5337sqm of gross lettable area. Trinity Village is located in Alkimos and opened in 2019. Coles anchors the centre and comprises 7634sqm of gross lettable area.
Harmony Property Investments acquired the two centres for $32.15 million and $33.07 million. The acquisitions expand the firm’s neighbourhood retail fund in WA.
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