A former supermarket site in Subiaco has sold for $15.5 million to a private investor.
JLL head of sales and investment WA Nigel Freshwater and director Sean Flynn sold the 3,117 square metre site at 277 Barker Road, which sits adjacent to the Crossways Shopping Centre, following an expressions-of-interest campaign.
The asset has been earmarked for development, underpinned by the City of Subiaco’s Draft Local Planning Scheme No.5 and the Subiaco Activity Centre Plan, which outlines numerous redevelopment options.
Under this current planning scheme, the site has been granted landmark status enabling a broad range of potential uses including apartments, fashion retail, restaurants, offices, hotel, serviced apartments, small bars and a tavern.
“The strong result represents a significant uplift on book value and was achieved through a highly competitive public sale process which generated more than 80 enquiries and multiple bids,” Mr Freshwater said.
“This can be said to be one of Subiaco’s most coveted and vigorously contested development opportunities.”
Mr Freshwater pointed to an existing flurry of development activity in Subiaco as a sign of improving market conditions.
“Recent developer market sentiment has been firmly in favour of smaller premium quality boutique mixed use projects. Typically, these projects are in high amenity locations with a close proximity to dynamic food and beverage options and strong public transport links” he said.
JLL did not disclose the name of the private investor buyer.
Major developments underway include Blackburne’s ONE Subiaco redevelopment on the former Subiaco Pavilion Markets site, the state government’s Subiaco East Redevelopment Project and the newly completed Subiaco XO and Bob Hawke Secondary College.
Mr Flynn said Subiaco’s recent positive market indicators had attracted significant interest to the site.
“Subiaco fits the bill perfectly from a demographic perspective, having a median household income well above the Perth metro average and a median house price over 2.5 times the Perth metro average provides a high level of residential amenity and proximity to the Perth CBD,” Mr Flynn said.
“As a result, not only did we receive numerous bids, but those bids reflected a surprising number of exciting potential uses.”
