Woolworths offload Banksia Grove NCR
Woolworths has sold a neighbourhood convenience retail centre in Perth's north east to a private Asia-based investor for about $27.3 million.
The Banksia Grove complex has a site area of 23,419sqm and net lettable area of 5,721sqm and contains 14 specialty tenants, including BWS, Plus Fitness, Coffee Club, Wokinabox and Terry White Chemmart. The centre also features a town square, a children’s playground and parking for about 280 cars.
The Centre sold on a passing yield of 5.96 per cent at $4768 per square metre
The smaller neighbourhood centres with less than 10,000sqm and only 10-15 specialties is firming up as hot asset class given the resilience against online sales, their high convenience factor and the greater depth of investor demand. Tenancies which require a physical visitor such as Gym's, Childcare, Medical Centres and Hair Salons are replacing the traditional retailers such as banks and Post Offices.
So far in 2019, we have recorded 25 sales of neighbourhood convenience centres with Woolworths and Coles key vendors selling off self developed assets to recycle capital into new projects.
Banksia Grove was sold by CBRE.