Perth based commercial property company Hawaiian has exercised it pre-emptive rights to purchase a 50% interest in Claremont Quarter. 

CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney and McVay Real Estate’s Sam McVay and Dan McVay exclusively acted on behalf of QIC to market the shopping centre stake.

Mr Rooney said the sales process generated considerable investor engagement from both domestic and offshore groups, institutional and private capital as well as local high-net-worths and family offices ahead of Hawaiian exercising its rights.

“There are limited opportunities to secure holdings in dominant and strong performing shopping centres, in this case one located in what has historically one of the more tightly held markets in Australia. Claremont Quarter is a premium retail offering, underpinned by one of Australia’s most affluent catchments with high retail spending, driving the centre’s impressive turnover performance,” Mr Rooney said. 

“This transaction completes a week-long splurge on major shopping centres in Perth, following Vicinity Centre’s acquisition of the Future Fund’s 50% interest in Lakeside Joondalup. This signals the strengthening demand for regional shopping centres following a market recalibration,” Mr Rooney added.  

“Claremont Quarter is a genuine fortress mall, positioned in one of Australia’s most affluent trade areas. Its unique tenancy mix and strong productivity levels make it an exceptionally rare offering that will deliver above market income growth for the foreseeable future.” Sam McVay said. 

“The response that we had was incredible and testament to the deep demand that great assets generate at all times of the cycle,” Sam McVay added.

The Claremont Quarter deal is the latest major retail transaction in Western Australia, with over $1.6 billion in deals completed since the beginning of 2023.  

The most recent deals include Lakeside Joondalup, Midland Gate for $465 million to Fawkner Property and PAG, Maddington Central for $107 million to Realside, Halls Head Central for $70 million to Centuria, Dianella Plaza for $76.25 million to Greenpool Capital, and GIC’s 50% interest in Westfield Whitford City for $180 million to JY Group. 

The Western Australian retail market has strong fundamentals, benefiting from population growth, booming commodity prices, strong residential value growth, higher levels of disposable income compared to the national average and a relatively affordable cost of living – all property drivers for retail demand.

While Perth residential prices were essentially flat between 2010 to 2022, partly due to a slowing in mining construction activity, values have increased by 35%-40%, outpacing other capital cities. 

Mr Rooney said this wealth effect alone should be a boon for renovation and homeware spending in shopping centres.

Western Australia’s jobs boom is expected to be another tailwind for retail spending, with the unemployment rate in WA sitting at 3.7%, significantly below other capital cities.  

A lack of new supply will also spur the market, driving up the productivity of existing assets.

Claremont Quarter is positioned approximately 9km south-west of the Perth, in what is considered one of the city’s most prestigious suburbs, Claremont Quarter offers a gross lettable area of 29,766sqm and is securely anchored by David Jones, Coles and Jack’s Whole Foods & Groceries, supported by five mini-majors and 108 speciality stores and kiosks.

The attractive tenancy profile includes a range of leading retailers such as Zimmermann and Sass & Bide alongside international luxury lifestyle brands including Chanel and Georg Jensen.

The centre occupies a highly strategic, landmark 2.7ha site, 100 metres north of the Stirling Highway.

The centre is set to benefit from a Laneway F&B / dining project, which is due to be completed and operating by the end of October. The reimagined Laneway precinct will deliver an engaging dining destination within Claremont with elevated food and beverage offerings. 

The centre is situated within an expansive and well-established trade area of 165,090 residents, which is growing by 1.0% per annum and is anticipated to reach 184,180 people by 2033.

It also benefits from the strong socio-economic profile of the main trade area, drawing an affluent and largely professional demographic with household incomes 37% above the Perth metropolitan average and 43% above the national Australian average.

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