Perth $34m mall sale the largest for 2020
Adelaide-based fund manager Red Wealth has acquired its second Woolworths-anchored West Australian mall this year, after paying $33.5 million for Carramar Village in Perth's northern suburbs.
The 5353-square-metre shopping centre on the north-western corner of Joondalup and Cheriton drives in Carramar sold on a yield of 6.2 per cent. According to selling agents CBRE, it was the largest shopping centre sale in Perth so far this year.
The neighbourhood mall, on a 2.08-hectare site, was part of a $140 million portfolio of retail, commercial and residential properties put up for sale a year ago by Canute Global Investments, owned by Perth-based Arthur Marshall, the founder of British logistics firm Canute Group.
Carramar Village was offered for sale by family-owned Canute Investments.
Carramar Village is anchored by Woolworths and features 17 specialty stores. It last traded for $22.75 million in 2012, when Canute acquired it from developer Peet.
The new owner, Red Wealth, was founded in 2002 by former mortgage broker Adrian Rivish.
According to its website, Red Wealth has more than $250 million of property under management, including $190 million in its diversified property fund, which owns neighbourhood shopping centres.
Its other assets are all retail properties, including the Woolworths-anchored Carnarvon Central neighbourhood shopping centre in regional WA, which Red Wealth bought in February for $16.1 million from ASX-listed Charter Hall Retail REIT.
“We believe in the resilience of the neighbourhood shopping centre sector, given the heavy reliance-of-income generated from strong-performing anchor tenants such as Coles and Woolworths and other non-discretionary retail tenants," said Red Wealth director Benjamin Fusco.
"Carramar Village was no exception, with a dominant Woolworths supermarket, diversified tenant mix, development upside and a strong primary trade area.” he said.
CBRE’s Anthony Del Borrello and Richard Cash negotiated the sale on behalf of Canute Global Investments.
“Negotiations were conducted throughout a very challenging period in Australia due to COVID-19, with restrictions and regulations changing at a rapid rate,” Mr Del Borrello said.
He said demand for non-discretionary and convenience neighbourhood shopping centres continued to be strong, thanks to the defensive and recession-proof nature of the asset class.
“We’ve seen additional pent-up demand, due to the lack of quality assets that have come to market this year because of the global pandemic," he said.
In December, Canute sold two Queensland malls – Ormeau Shopping Centre and Logan Village Shopping Centre – for a combined $45 million to Clarence Property.
Leading property coverage delivered to your inbox
Sign up to our new weekly Inside Property newsletter
Introducing your NewsfeedBeta
Follow the topics, people and companies that matter to you.
Read More
Latest In Commercial
The property fund spared by COVID-19
Charter Hall's Long WALE REIT has so far navigated the pandemic well, with the value of its properties ticking higher by $96 million.
- Ingrid Fuary-Wagner
ARA adds $32m sweetener to win over Cromwell's loyal fans
A long-running battle enters a new stage as ARA tries to build its stake to nearly 27 per cent through on-market purchases.
- Michael Bleby
ARA increases proportional takeover bid for Cromwell
ARA Asset Management has increased its proportional takeover bid for Cromwell Property Group to 92¢ a share from 88¢.
- Sarah Thompson, Anthony Macdonald and Tim Boyd
In eerily quiet Melbourne, this time it's different
Business owners in the Victorian capital's once-busy suburbs are putting on a brave face, but they need these lockdowns to work.
- Michael Bleby and Yolanda Redrup
Tradies get a reprieve but 735 construction projects still at risk
The Andrews government has clarified restrictions on building projects but it still means that more than 166,000 workers are at risk of being stood down.
- Michael Bleby
