Charter Hall REIT has offloaded a retail centre on the coast in WA's top end, selling the Carnarvon Central Shopping Centre off-market for $16.1 million.

Situated on a high-exposure 1.63-hectare site in the Gascoyne region, the neighbourhood shopping centre is anchored by Woolworths and has 15 specialty stores and four offices, including a BWS, Amcal Pharmacy and Smokemart. 

The area is 900 kilometres north of Perth nearby a range of holiday and mining hot spots.

At a glance:

• The Carnarvon Shopping Centre near the top end of WA has been sold to an Adelaide-based syndicate for $16.1 million.
• CBRE’s Anthony Del Borrello and Richard Cash brokered the deal on behalf of Charter Hall Retail REIT. 
• The Woolworths-anchored shopping centre has a WALE of 7.7 years.

CBRE’s Anthony Del Borrello and Richard Cash brokered the deal on behalf of Charter Hall Retail REIT. 

Mr Del Borrello said the buyer was attracted to the investment fundamentals of the property.

"More than 65 per cent of the centre’s current net income derives from Woolworths and it has a secure 7.70-year WALE (by income)," he said.

“Mining sector recovery has seen an uptick in demand for assets in WA’s north-west, which has resulted in additional activity in many of the towns in the state’s top end – population growth and infrastructure spend has also positively impacted the region’s shopping centres." 

“The sale reinforces growing confidence in WA’s north-west, which is being spurred by improved mining conditions and is set to see workers drawn back into the region.” 

The asset is the second neighbourhood shopping centre in WA to settle this January, following the sale of Woolworths Greenfields, which was acquired by Primewest for $32,000,000 at an approximate yield of 5.89 per cent.

Mr Cash said the convenience and non-discretionary nature of neighbourhood shopping centres have insulated them from e-commerce and local conditions, ensuring that the demand for these assets has remained "very strong" in WA.

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