Former Subiaco supermarket site flies off the shelf
A major Perth supermarket site has been snapped up for $15.5 million, flagging that the local market is improving, agents say.
A private investor bought the 3177sqm former supermarket site in Subiaco at 277 Barker Rd last month.
It followed a competitive expressions of interest campaign, according to JLL’s Nigel Freshwater, and is being touted as a positive sign for the inner-city market.
“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,” he says.
“This can be said to be one of Subiaco’s most coveted and vigorously contested development opportunities.”
The site boasts a prominent location adjacent to the bustling Rokeby Rd retail, food and beverage strip.
It is positioned between two large public car parks and adjacent to the Farmer Jacks Supermarket-anchored Crossways Shopping Centre, offering plenty of exposure.
The property also has a favourable planning framework, paving the way for numerous redevelopment options including apartments, fashion retail, restaurants, offices, hotel, serviced apartments, small bars and a tavern.
JLL’s Sean Flynn says the interest drummed up by the sale is evidence of the improving market conditions in Subiaco and follows the commencement of a number of key projects.
Those including 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.
“The development activity in Subiaco coupled with its undoubtedly positive market fundamentals will allow the buyer to take a strong positioning in a boutique market,” Freshwater says.
“Recent developer market sentiment has been firmly in favour of smaller premium quality boutique mixed use projects.
“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 two-and-a-half times the Perth metro average provides a high level of residential amenity and proximity to the Perth CBD.
“As a result, not only did we receive numerous bids, but those bids reflected a surprising number of exciting potential uses.”