A Victorian investor has spent $6.3 million on a retail asset in coastal Halls Head, near Mandurah.
On the south east corner of Peelwood and Glencoe parades, also with frontage to Waltham Street, the complex is occupied by, amongst others, Australia Post, Bendigo Bank, BWS (a Woolworths Group company), and supermarkets Foodworks and Farmers Jack’s.
It also has more than 100 car parks, and is adjacent to Vicinity and Industry Superannuation Property Trust’s Halls Head Central which underwent a $55 million refurbishment in 2016.
Cape Developments recently developed a large format retail complex, Halls Head Commercial Centre, on Rutland Drive in the pocket. A Bunnings is also nearby.
Halls Head’s retail catchment – more than 40,000 – has been forecast by the government to grow to more than 62,000 by 2036.
In the Peel Region, the suburb is about 2.5 kilometres south west of Mandurah (pictured, top) and 72kms south of Perth’s CBD.
Last week, a Satterley property Group syndicate sold the 630 hectare portion of its Austin Lakes Estate in South Yunderap – 17kms south east of Halls Head – for $19.7m.
Coincidentally the buyer of that property is also Victorian: Wolfdene Projects, on behalf of BMP Property Investments, making its maiden Western Australian purchase.
Long leases to essential services in demand now: agent
Mr Borrello said some investor trends have emerged since March 11 when the World Health Organisation called the coronavirus a pandemic, grinding global economies.
These trends include investors applying a greater focus on shopping centres with less speciality tenants.
“Preferably under eight,” the executive added.
Retail investments rented to medical/quasi-medical users are also more sought now.
A stronger ‘flight to quality and security’ surrounding covenants and lease terms is another trend, Mr Borrello said.