Midland-Gate-market
The centre recently underwent a $100 million redevelopment and expansion. Image : Supplied
  • 100% freehold interest along with management rights is on offer
  • The town centre and retail facility is 14.4ha
  • CBRE and Colliers have been appointed to manage the sale

Located on the outskirts of Perth, Midland Gate shopping centre has hit the market with offers expected in the vicinity of $500 million.

With a gross lettable area of 14.4ha, the centre is anchored by the centre is securely anchored most notably by a Coles, Woolworths, Big W, Kmart and Target along with an eight-screen Ace Cinemas complex.

Midland Gate is run by ASX-listed Vicinity Centres, which operates it on behalf of a mandate client and Vicinity Retail Partnership.

The sale of 100% freehold interest together with management rights are being overseen by CBRE’s Pacific Head of Retail Capital Markets Simon Rooney and Colliers’ Asia Pacific Head of Retail Capital Markets, Lachlan MacGillivray.

The centre hits the market amid an upsurge in retail real estate transactions. 2021 saw transaction volumes total at $3.3 billion, a record high for Australia by a significant margin, according to a report from JLL research.

“The value proposition for regional shopping centres is now increasingly compelling for investors, given the attractive, superior comparative returns on offer, compared to most alternative commercial property asset classes, where pricing levels continue to be at historic highs,” CBRE’s Mr Rooney said.

 “As retail fundamentals continue to reset for high quality assets and move into a clear growth phase, domestic and offshore investors are proactively re-engaging and seeking out top-end shopping centre investment opportunities such as Midland Gate.

Neighbourhood shopping centre transactions collectively totalled $2.7 billion in 2021, according to JLL research. The figure represents an annual increase of 81%.

Midland-gate-sale
A $100 million redevelopment and expansion of Midland Gate was completed in 2019. Image: Supplied

The retail centre took a hit with the onset of the pandemic but has since recovered well, benefiting from strong retail performance across Western Australia.

“Western Australia’s retail sales growth has consistently outpaced the national average, with the State having recorded retail sales growth of 2.6% on average over the past decade, outperforming the national average by 40 basis points,” said Colliers Mr MacGillivray.

International Expressions of Interest to purchase the retail centre close on Thursday 7 April 2022.

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