A Chinese investor has made their first foray into the Perth property market, securing Kelmscott Plaza in the city’s south-eastern suburbs for $19 million.
CBRE’s Richard Cash and Anthony Del Borrello, together with Collier International’s Ben Tana, negotiated the sale of the Woolworths-anchored centre on behalf of Australia Pacific. The centre was sold with an 8.18-year WALE – reflecting a yield of 6.42%.
The Expressions of Interest campaign resulted in more than 110 buyer enquiries from local, national and offshore investors – leading to six formal offers and three shortlisted buyers, before finally transacting to an offshore Chinese investor.
Mr Cash said the property’s strong metropolitan location was a major selling drawcard.
“Kelmscott Plaza ticked all the boxes for a secure, income producing asset in an established and growing location. Perth’s south east is the city’s fastest growing region, with strong population growth and local government investment in the area helping to position retail investments such as this favourably,” Mr Cash said.
“This transaction highlights growing confidence in the Perth market, particularly among investors who are looking for opportunities to capitalise on the state’s increasing economic stability and attractive investment returns.”
Colliers International’s Mr Tana said WA’s retail market was well-known as a stronghold for Singaporean buyers and the entry of a new Chinese investor reflects confidence in WA’s capacity to deliver strong investment returns.
“WA is experiencing improved market conditions because of an increase in domestic and offshore interest, combined with a lack of quality stock on offer,” Mr Tana said.
“Meanwhile, the sale of Kelmscott Plaza was secured by the introduction of a Chinese buyer.”