A prominent commercial building with a long-term lease to Woolworths has come onto the market for the first time in 30 years.
The 2,311-square-metre property at 136 West Coast Drive in Perth’s Sorrento is being offered for sale with a long lease to Woolworths Limited, trading as BWS, and lease to Italian Eatery II Pirata Pizzeria and Café. The property currently generates an annual income of $221,000 plus outgoings.
The consolidated offering comprises three adjoining properties, with multiple street frontage aspects to West Coast Drive, The Plaza and Padbury Way, providing the potential for greater retail and residential redevelopment options in the future.
CBRE’s Matthew Milne — who along with other CBRE selling agents Ben Younger and Kate Foley have been appointed by property development advisory group OP Properties to sell the property — said the sale was anticipated to generate strong interest from a broad range of buyer groups.
“The strong lease coupled with the significant underlying land holding will appeal to investors, land bankers and developer groups which are happy to enjoy a strong income stream,” he said.
OP Properties director Luke Parker said the property was strategically positioned to capitalise on the ongoing growth of the wider Sorrento precinct.
“The property benefits from being strategically located within the Sorrento Local Centre Activity Centre Structure Plan area, which is subject to an advanced planning amendment for multi-level mixed-use retail and residential development that will facilitate the urban regeneration of the entire local precinct,” Mr Parker said.
Ms Foley said the property’s prime position in one of Perth’s prized beachfront locations would be a key selling factor.
“This is a rare opportunity to acquire a blue-chip lease covenant benefitting from future development upside with panoramic coastal aspects,” she said.