Woolworths Aveley Shopping Centre in Perth’s north is being offered to market, providing  investors with a rare opportunity to acquire a strong-performing modern neighborhood centre in a high growth Perth suburb. Stonebridge’s Justin Dowers, Philip Gartland and Kevin Tong have been exclusively appointed to sell  Woolworths Aveley Shopping Centre via an Expressions of Interest campaign.  

Woolworths Aveley is anchored by a high-performing full-line Woolworths supermarket plus 8 shops and medical centre and features an ultra-efficient layout reducing management intensity. Originally developed by Woolworths’  development arm Fabcot in 2016, the Centre boasts a strong total centre MAT of over $50 million and a highly secure  income stream of which 57% is underpinned by Woolworths.1 

The Centre is prominently positioned on a 17,647 sqm corner site within the rapidly growing City of Swan, a  jurisdiction which is expected to average 2.13% p.a. population growth to 2051.2 Over recent years, Aveley has seen  substantial residential and commercial development, establishing itself as a key growth hub, with expectations of  continued growth as more families and businesses are drawn to the area. 

Mr Dowers said “Western Australia has been a hotspot for property investment with over $1.6 billion in major retail  transactions in the last 12 months alone, up 52% from previous year. With WA being Australia’s fastest growing state,  investors are taking a keen interest in the region which is buoyed by recent data on improving lending rates and lower  inflation.  

As a result of improving sentiment, we are expecting to field strong interest for Woolworths Aveley, especially with it being your ‘bread and butter’ neighbourhood centre – income secure with growth prospects.”  

Mr Gartland said “Centres like Woolworths Aveley are rarely built now due to the construction cost hikes Australia has  witnessed post covid. These costs are accentuated in WA, where the ability to source labour / sub-contractors is  extremely challenging. A number of clients have told us that just building a supermarket box costs in the order of  $25m now, let alone 8 specialties. These dynamics mean shrewd investors are buying these established assets well  below replacement cost & that the prospects for continued rental growth remain high.” 

Mr Tong said “The Centre boasts an exceptionally attractive income profile, with 57% of its gross income secured by  Woolworths. Additionally, all specialty tenants and the medical centre operate on net leases, further enhancing the  income profile and reducing outgoings exposure. These safe haven fundamentals make the Centre particularly attractive to Asian capital which often seeks stable, secure investments of this nature.”  

The Expressions of Interest campaign for Woolworths Aveley closes Thursday 7th November 2024 at 5:00pm AEDT  (2:00pm AWST). 

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