2nd April 2019.
Sirona Capital has successfully negotiated the sale of its Woolworths-anchored The Village at Margaret River in WA’s South West to the Perdaman Group.
Sirona sought to test the market for the contemporary shopping centre in September last year. The campaign for the 5,706sqm shopping centre was managed by Colliers and CBRE.
The centre was purpose-built for Woolworths in 2013 and sits on a 7,233sqm site on the corner of Town View Terrace and Wilmott Avenue. It is the newest shopping centre in tightly-held Margaret River, a premier wine and tourism destination, 220km south of Perth.
The neighbourhood centre has a fully leased net income of $1.5 million and its anchor Woolworths lease runs until 2034 and includes four renewal options.
The centre was sold for $20m, representing a passing yield of approximately 7.2%.
The centre was sold to an investment syndicate established by Perdaman Capital who will continue to capitalise on opportunities available to the centre.
Comments attributed to Sirona Capital managing director, Matthew McNeilly:
"Since acquiring the centre through an investment fund in March 2015, Sirona has repositioned it as a retail destination for Margaret River residents and visitors, while also attracting new tenants, increasing specialty retail occupancy from less than 45 per cent to almost 90 per cent.
One of our long-term goals has been for The Village at Margaret River to make an important contribution to the outlook for all retailers in Margaret River and we believe we’ve achieved that.
But more importantly, we’ve wanted to deliver an attractive centre that encourages shoppers and visitors to stay in the town centre longer.
Given current investor interest in high quality suburban and regional retail properties of this size, we are delighted that Perdaman Capital has chosen The Village at Margaret River to become part of its regional shopping centre portfilio."
Comments attributed to CBRE Director Retail Investments Richard Cash, and CBRE WA Retail Investments Anthony Del Borrello:
"The Village Margaret River campaign was hotly contested by a number of local, national and offshore bidders with a total of 9 offers received. This transaction conveyed the continued demand for WA regional shopping centres with long leases to anchor tenants." – Richard Cash
"There has been over $80 million worth of retail property transactions completed so far in 2019 demonstrating the confidence in the sector despite the negative sentiment." – Anthony Del Borrello
Comments attributed to a Colliers International Director Retail Investment Services, Ben Tana"
"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."