Perth’s The Colonnade snapped up for $38m
Perth high-profile retail and commercial spot The Colonnade has sold to local property fund manager Realside for $37.85 million.
The property, at 388 Hay St in the inner-city suburb of Subiaco, was sold by Perth-based investment group Hawaiian.
The sale of the 8175sqm centre was brokered by Ray White Commercial (WA) property adviser Brett Wilkins and JLL directors Nicholas Agapitos, Nigel Freshwater and Sean Flynn.
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Subiaco has undergone a regeneration in recent years, while retail values in Perth appear to be holding up. Wilkins cites the potential repositioning of the area around the centre, which has an average lease of three years, saying these made The Colonnade an attractive investment for Realside.
“Subiaco … has been very depressed in recent years, but a number of projects means the future for the suburb is bright,” Wilkins says. “The asset offers a diverse tenancy mix and secure income stream, anchored by NYSE-listed Fortune 500 company Newmont, ASX-listed Northern Star Resources and Goodlife Health Club.”
The 24-year-old building was developed by Wayne Teo as a high-end fashion centre before being purchased by Hawaiian in 2007.
It was refurbished and remodelled to introduce two levels of office space and a gym on the ground floor.
Also included in the building is a nine-level car park.
Agapitos says astute purchasers are seeing counter-cyclical value in Subiaco at present.
“The sale of The Colonnade represents investor confidence in the affluent inner-metropolitan suburb of Subiaco,” he says.
“The property represented an outstanding opportunity to acquire a secure income-producing investment on a prominent corner in the heart of Subiaco.”
This article originally appeared on www.theaustralian.com.au/property.
