Australasian Property Investments Limited (APIL) has secured a $13.5 million footprint in Perth’s retail investment market, with the off-market acquisition of Ballajura Central Shopping Centre.
Located in Perth’s north eastern suburbs, on the corner of Bellefin and Hamelin drives, the Woolworths-anchored centre comprises five speciality shops and a Caltex Petrol Station across a total net lettable area of 4,680sqm.
CBRE Director Andrew Woodley-Page, who negotiated the off-market sale on behalf of APIL, said the deal marked the first significant retail investment in the Perth market in 2016.
“Offering a WALE of 11.5 years, the Ballajura Central Shopping Centre offered an opportunity to secure a strong performing asset backed by an attractive tenancy profile in an established metropolitan location,” Mr Woodley-Page said.
“The asset’s catchment area is forecast for steady population growth, which will ensure the continued performance of this asset.”
Mr Woodley-Page said the WA commercial market continued to attract strong levels of investor interest for assets backed by strong covenants.
“There is a strong pipeline of interest for properties that offer attractive investment fundamentals such as this, with both interstate, offshore and local buyers seeking opportunities that offer both security and potential for capital growth,” Mr Woodley-Page explained.
APIL Managing Director Peter Hughes raised the equity for the acquisition within days of the offering being put to investors.
Mr Hughes commented: “We are delighted with this acquisition and Ballajura Central Shopping Centre typifies the outstanding investment fundamentals demonstrated by well-located neighbourhood shopping centres in Perth’s metropolitan area. “
The purchase follows a number of recent successful acquisitions of neighbourhood shopping centres in Champion Drive and Carine Glades.
“Ballajura Central represents APIL’s 21st property investment trust, bringing the total value of property acquisitions to more than $600 million,” Mr Hughes explained.
The Ballajura Central Shopping Centre benefits from close proximity to the South Ballajura Community Centre, the Malaga Industrial precinct and major thoroughfares including the Reid and Tonkin highways.