- Currently generating $800k per annum in income
- Sale was handled by CBRE
- Follows investor trend of acquiring strong convenient shopping centres
Glenfield Shopping Centre, just north of Geraldton in Western Australia, has been sold for $10.4 million.
A high performing IGA anchors the centre which along with a drive-through Cellarbrations, have recently entered new 10-year leases.
On top of these two, there are eight other speciality tenants with the asset currently generating a safe long-term yearly income stream of $800,000.
Along with customers from the northern suburbs of Geraldton – which is home to almost 40,000 residents – the centre attracts travellers from the nearby North West Coastal Highway, most heading to or from Perth.
Glenfield Pty Ltd designated Richard Cash from CBRE as the negotiator of the sale.
“Negotiations were conducted throughout a very challenging period in Australia due to COVID-19, with restrictions and regulations changing at a rapid rate. The contract negotiation took patience and tenacity, resulting in a fantastic outcome,” Mr Cash said.
Mr Cash further commented that this transaction reflects on investor’s appetite for quality retail assets, even during times of uncertainty.
“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,” Mr Cash explained.
“There continues to be strong demand for non-discretionary and convenience neighbourhood shopping centres due to the defensive and recession proof nature of this asset class.”
In recent times there has been strong demand from investors for high quality non-discretionary retail assets due to changing consumer habits who now prefer conveniently located shopping centres.
Recently, a shopping centre was purchased in Parramatta for $41.4 million with investors who prefer strong non-discretionary orientated shopping centres.