National syndicate in Perth retail play

The Carramar Village shopping centre in Perth’s northern suburbs has been sold for $33.5 million; a move CBRE says represents the largest Perth shopping centre sale for 2020.

CBRE director of large format retail and retail services Richard Cash and senior negotiator Anthony Del Borrello negotiated the sale on behalf of Canute Global Investments to a national investment syndicate.

The sale reflected a yield of 6.20 per cent and a rate per square metre of $6,257.

Carramar Village was built in circa 2009, and is located approximately 28 kilometres north of the CBD, on the corner of Joondalup and Cheriton drives.

The 5,353sqm centre is anchored by Woolworths and features 17 specialty stores, including a Priceline Pharmacy and the Healius Medical Centre.

The property also includes 2,500sqm of developable land.

Mr Del Borrello said the transaction was the result of several months of negotiations, navigating changing restrictions and regulations during COVID 19, and highlighted the investment appetite that remained for quality retail assets.

“We’ve seen additional pent up demand due to the lack of quality assets that have come to market this year because of the global pandemic,” Mr Del Borrello said.  

“Furthermore, demand for non-discretionary and convenience neighbourhood shopping centres continues to be strong due to the defensive and recession proof nature of this asset class.”

Carramar Village was marketed for sale as part of a portfolio of four other assets based in Western Australia and Queensland, including three shopping centres, an office building and residential offering.