Arise Developments has sold two new neighbouring convenience retail investments – part of a master-planned town centre in the Whiteman Edge housing estate, in Perth’s north east Brabham.
Marketed as a whole, 2 & 3 Marvel Entrance has instead been purchased by two groups for a total of $31.42 million.
Colliers’ James Wilson and Richard Cash closed an expressions of interest campaign in April; promoted as Brabham Common and with a weighted average lease expiry of 13.7 years, they said interest came from local and offshore individuals and groups.
“The…result underpins the high demand for convenience retail investments in prime locations secured by strong multinational/chain covenants,” Mr Wilson added.
Established in 2011, formerly part of Henley Brook, 24 kilometres from town, Brabham is named after racing car driver Jack Brabham; the region accommodates the Caversham Motor Racing Circuit reserve the sportsman started his career.
The deals come nearly two years since Arise sold a new office south of the CBD in Rockingham, between two of Western Australia’s fastest growing regions, Baldivis and Kwinana, to local fund manager Lester Group for $28.5m.
Local fund manager Westbridge snapped up Lot 3 Marvel Entrance, with a 7-Eleven service station and second building leased to Autobahn, KFC, Oporto, Subway and seven more specialty retailers.
Fully let, this component also includes a 24 hour gym, XO Fit.
Meanwhile a Queensland private investor acquired Lot 2 Marvel Entrance – a McDonald’s restaurant.
All up the lettable area is 7593 sqm on land of 2.1 hectares, about 300 metres from a proposed train station.
The region’s town centre includes a neighbourhood mall with a Coles and 12 specialty stores (story continues below).
Stockland is behind Whiteman Edge.
Mirvac and Peet are other major developers in the area.
Another asset for Westbridge fund
Westbridge will slot the Brabham asset into the Diversified Fund No 4 (WDF4).
“The property offers a secure income profile through blue-chip non-discretionary and service-based retailers,” head of Capital Transactions, Simon Worth, said.
“Furthermore, the centre…benefits from its strategic placement in the Whiteman Edge town centre, a rapidly evolving growth corridor,” he added.
The deal comes two months since Westbridge sold the fully leased Cottesloe Medical Centre for $11.8m – a 5.71 per cent net passing yield.
The group also purchased a Dan Murphy’s anchored retail investment at Southern River for $20.25m last August.
Like Brabham, that asset is held by WDF4.
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