Two recent sales campaigns for neighbourhood shopping centres have underlined the strength of the sector in Western Australia, according to Colliers International.
Colliers announced today that supermarket giant Coles Group’s property arm had acquired the Hannans Boulevard shopping centre in Kalgoorlie, for $8.85 million.
The Hannans Boulevard centre comprises 4,184 square metres of retail space, anchored by a Coles supermarket.
Colliers International investment services director Mark Werrett said the sale was a strategic purchase for Coles Group Property Developments.
“The deal gives them an asset that’s performing well and is located in Kalgoorlie’s major growth area, just north of the town’s CBD and with the potential for expansion,” Mr Werrett said.
“It’s also indicative of the ongoing strength and appeal of this neighbourhood retail sector and the level of demand we’re seeing right across the board, in both metropolitan and regional areas, for these types of assets.”
Mr Werrett said the sale followed the completion of an expressions of interest campaign for the Altone Park shopping centre in Beechboro, owned by Centro.
He said there were a number of serious bids in play for the centre, with a prospective buyer conducting due diligence.
“Despite the doom and gloom pervading the broader retail sector, in this neighbourhood shopping centre market we’ve seen no increase in vacancies or arrears,” Mr Werrett said.
“The mix of tenants in these centres are withstanding the pressures of the retail environment and underlining the stability of that neighbourhood sector, and that’s being translated into the level of demand we’re seeing from buyers for these assets.”
Mr Werrett said he expected demand from local and international investors and syndicates to continue across the board in metropolitan and regional areas.
“With the continuing thirst we’re seeing for these deals we’d expect to see a number of neighbourhood centres changing hands over the coming weeks and months.”
