Woolworths slaps $35m price tag on WA shopping centre

Banksia Grove Shopping Centre in WA is on the market,

Woolworths will sell off a near-new West Australian shopping centre it opened just over a year ago, as the supermarket giant continues divesting a number of its recently-built retail assets.

After offloading another WA centre at Aveley in August, Woolworths has now listed its Banksia Grove shopping centre, with price expectations of around $35 million.

Woolworths remains the anchor tenant at the suburban centre, occupying 3850sqm of the 5721sqm floorspace on a 12-year lease.

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Banksia Grove also has 14 specialty tenants including BWS, Plus Fitness, Coffee Club, Wokinabox and Terry White Chemmart, as well as an overall site area of more than 23,000sqm.

Located about 25km north of the Perth CBD, the centre sits in one of WA’s highest growth regions and within the $2 billion Banksia Grove masterplanned community.

CBRE’s Richard Cash and Anthony Del Borrello are marketing the shopping centre on behalf of Woolworths, in an expressions of interest campaign that closes on March 21.

“We anticipate significant interest from a range of local, national and offshore investors due to the income security of anchor tenant Woolworths and income growth offered through the specialty tenants,” Del Borrello says.

“The security of tenure provided by ASX listed anchor tenant Woolworths’ long-term lease and the depreciation benefits of a newly built centre will make this a highly sought-after asset.”

Cash says WA retail investments with blue chip tenants continue to attract interest nationally.

“The last newly-built Woolworths-anchored centre to come to the market in WA, Woolworths Aveley, sold at a yield of 5.74% to a private east coast investor in August 2018,” he says.