17/09/2014 - 04:51

Primewest picks up Tyne Square for $9.05m

17/09/2014 - 04:51

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Colliers International has sold more than $50 million in retail property to date in 2014, with Northbridge’s Tyne Square the latest asset to change hands in a deal brokered by the commercial agency.

Colliers International has sold more than $50 million in retail property to date in 2014, with Northbridge’s Tyne Square the latest asset to change hands in a deal brokered by the commercial agency.

Developer and syndicator Primewest purchased the property for $9.05 million from JOU1 Pty Ltd, an east coast based private investor.

Tyne Square is anchor tenanted by a Supa IGA supermarket and also includes a pharmacist and medical centre.

The deal followed a $7 million-plus offer from a Singaporean investor for The Village shopping centre going unconditional.

Colliers International director of retail investment services Mark Werrett has brokered more than $50 million in retail deals this year, including the $14.05 million sale of the Northam Boulevard Shopping Centre, and the $18.75 million sale of Bunbury’s Stirling Centre.

Mr Werrett said there was considerable interest from investors in neighbourhood shopping centres across WA.

“We continue to see very high levels of enquiry and interest from domestic and offshore buyers for well-performing, well-located retail properties, and there continues to be a shortage of these assets coming to the market,” Mr Werrett said.

“We have ongoing low interest rates and strong retail sector performance in WA, with the total return on investment for retail here at 11.8 per cent last financial year – comfortably ahead of the national figure, which was 9.8 per cent.

“That all fuels the demand for these assets, from a private high net worth level to institutional buyers.”

Mr Werrett said he had also recently been appointed by Australand to sell the Port Coogee Shopping Centre, which has recently been approved for construction.

He said he expected that asset to generate significant interest.

“That’s a 4,435sqm centre to be anchored by Woolworths, with 12 specialty retailers,” Mr Werrett said.

“In light of the current level of market activity and interest, we’d expect to once again be fielding numerous offers for this asset.”

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