One of the West’s biggest large format retail centres has come to market, just the second such property to be offered in a state capital catchment this year.
Joondalup Square, a single-level, open-air LFR centre 26km north of the Perth CBD, is described as the WA capital’s “pre-eminent shopping destination for furniture, home improvement, bedding, homeware, pet supplies and fitness servicing Perth’s Northern Corridor and growing population”.
Colliers and Cygnet West are jointly bringing the asset to market on behalf of a private investor via an expressions-of-interest campaign due to close on September 26 of this year.
It is the first time the centre has been offered for sale. A price guide has not been disclosed, however, in October of last year HomeCo offloaded its HomeCo Midland centre, 15km west of the Perth CBD, to PWD for $74.75 million.
Built in 2013, the Joondalup centre has a total lettable area of 13,216sq m across three freestanding buildings with a combined area of 27,598 square metres.
Joondalup Square’s catchment extends 45km to the north and 10km to the south, “tapping into a rapidly growing population base projected to reach an impressive 564,264 residents by 2041”, the agents said.
The centre also has at-grade parking for 352 vehicles and benefits from foot traffic generated by a Bunnings next door.
Colliers head of retail middle markets, Australia, James Wilson said LFR had recorded a 53 per cent increase in transactions year-on-year, highlighting the strong domestic and offshore investor interest for the resilient retail sub sector.
“Despite this, Joondalup Square is only the second capital city LFR centre to be publicly marketed in 2024, highlighting the tighly held nature of trophy centres of this calibre,” Wilson said.
The other is the Bethania Lifestyle Centre, 33km south of Brisbane, which was completed late last year. An expressions of interest campaing for the asset ended on August 28 and negotiations are continuing, according to agents from CBRE.
The centre’s mix of high-profile national retailers comprises 14 LFR tenants and five specialty stores that includes Amart Furniture, Beacon Lighting, PetO, Bedshed, Kitchen Warehouse, Forty Winks, Adore Home Living, and Barbeques Galore.
Cygnet West partner in commercial agency Wayne Lawrence said the buildings were fully committed but there was room on the site for another 1280sq m with tenant offers in place.
LFR investment volumes have significantly increased in 2024, reaching $352 million by the end of July, a 53 per cent rise compared to the same period in 2023, highlighting the strength of the subsector, according to Colliers.
Despite this overall growth, there have been just two LFR deals in WA since the beginning of 2023.
Nationally, there remains limited new supply with the pipeline of new centres 33 per cent lower than in 2021.
Colliers research data shows that Perth’s forecast LFR supply to 2026 is currently 53,125 square metres.
