Singapore pitch leads to $12.5m off-market Perth shopping centre deal

6 June, 2018

A marketing trip to Singapore to showcase WA property has resulted in the off-market sale of a northern Perth shopping centre for $12.5 million.

The deal for Pearsall Shopping Centre at 155 Willespie Drive, Pearsall, was brokered by Ray White Commercial WA agents Stephen Harrison and Brett Wilkins.

The team introduced the new owner, a Singaporean investor, to the site during a recent visit to the global economic hub.

The neighbourhood shopping centre 23km north of the Perth CBD is anchored by IGA.

The other tenants are IGA Liquor, a pharmacy, a medical centre, a fish-and-chip shop, a Chinese restaurant and a gift shop. The weighted average lease expiry is 10.13 years.

With a net rental income of $790,000, the sale price represents a yield of 6.32 per cent. The sale rate per square metre of $4685.

The centre stands on on a total land area of 7809sqm and the net lettable area is 2668sqm.

Mr Harrison says the deal, which settled on May 9 on behalf of a private-investor vendor, is a smashing result.

“The passing yield represents a very sharp cap rate especially for a franchise IGA,” he says.

“Ray White Commercial WA conduct many off-market transactions in this manner.”

Mr Wilkins says: “The buyer is very happy with their acquisition and is looking for more opportunities similar to this.”

The small neighbourhood centre on the corner of Brooklyn Avenue was built in 2012. It has about 145 car bays plus on-street parking.

Ray White Commercial WA is currently marketing a selection of retail assets across the metropolitan area including a small shopping complex in Bindoon for $2.5 million and a high-profile shop on Rokeby Road, Subiaco.

Retail investments in Adelaide Terrace, East Perth, and William Street, Perth, will be among four properties to go under the hammer at the Ray White Commercial WA quarterly auction event on June 13. The auction will be held at 12-14 The Esplanade, Perth, starting at 10.30am.