Charter Hall Retail REIT has sold a shopping centre in the Western Australia top end town of Carnavon.
The $16.1 million off-market deal for Carnavon Central is to an Adelaide based syndicate.
At 35-55 Robinson Street, at the south west corner of Olivia Terrace and also with frontage to Alexandra Street, the neighbourhood complex is both at the centre of the coastal holiday hotspot and a block from the town’s airport.
It includes four offices and 15 speciality stores, anchored by a Woolworths and occupies a 1.6 hectare parcel.
Carnavon is about 900 kilometres north of Perth in the Gascoyne region – also a major mining-related employment zone.
Charter Hall flagged its intention to sell three Retail REIT assets mid-last year including Carnavon Central, and at Katherine in the Northern Territory and Balo Square in New South Wales.
These three assets had a combined book value of $60.9 million.
Carnavon Central “insulated” from e-commerce retail threat: CBRE
Just over two thirds of Carnavon Central’s rental income is derived from Woolworths, which occupies a BWS outlet as well as a supermarket.
Mr Del Borello added that, based on income, the complex has a 7.7 year weighted-average-lease-expiry (WALE).
“Mining sector recovery has seen an uptick in demand for assets in Western Australia’s north west, which has resulted in additional activity in many of the towns in the state’s top end,” the executive said. “Population growth and infrastructure spend has also positively impacted the region’s shopping centres”.
Improved mining conditions are seeking may workers drawn back into the region, the agent added.
Mr Cash said Carnavon Central is the second neighbourhood shopping centre to settle this month in Western Australia: following Primewest buying Woolworths Greenfield for $32 million on an approximate 5.9 per cent yield.
“The convenience and non-discretionary nature of neighbourhood shopping centres has insulated these assets from e-commerce and local conditions, ensuring that the demand for these assets has remained very strong in Western Australia” Mr Cash added.