4th April 2019.
Investor Sirona Capital hasmadea $2 million profit over four years by selling a Margaret River mall for $20 million to a syndicate of investors led by Vikas Rambal’s Perdaman Capital.
The sale of the Woolworths-anchored shopping centre is on a high passing yield of 7.2 per cent, but represents an improvement in the asset’s underlying value compared with the 9.3 per cent yield on which Sirona purchased it from SCA Property Group in 2015.
Sirona, which had spent the last four years repositioning the mall as a centre with a stronger local connection and increasing the speciality retail occupancy from below 45 per cent to nearly 90 per cent, had hoped for a stronger price, Sirona managing director Matthew McNeilly said.
‘‘It’s a lot easier to bid for metro assets than regional assets,’’ Mr McNeilly told The Australian Financial Review on Wednesday. ‘‘The price is still a very good one.’’
Sirona put the 5706sqm mall on the market in September, in a campaign managed by Colliers and CBRE.
Businessman Mr Rambal’s Perdaman Group is better known for the production of chemicals and fertiliser.
The Village was purpose-built for Woolworths in 2013 and sits on a 7233sqmsite on the corner of Town View Terrace and Wilmott Avenue.
Nine offers were received for the centre, CBRE director retail investments Richard Cash said. ‘‘This transaction conveyed the continued demand for WA regional shopping centres with long leases to anchor tenants.’’
Colliers International director retail investment services, Ben Tana, said demand was meeting the increased supply of shopping centres on the market.
‘‘There is no doubt that there has been an increase in the number of shopping centres for sale, however, that supply has been met by sufficient demand from interstate and offshore buyers and more recently we are also seeing local syndicators transact,’’ he said.