The site of an inner-Perth shopping centre that has been owned by the same family since 1927 has been listed for sale.
Occupying a prime 8,024sqm landholding in Como, 25 Preston Street is anchored by an IGA supermarket and the Karalee Tavern, with both parties on leases running to 2028.
Including several specialty shops, Como Centre generates a net holding income of $887,089 per annum and offers a WALE of 4.4 years.
The property was purchased by the Burnett family in 1927 as a home for its bakery business, which remained a Como staple until the current shopping centre was developed at the site in the early-1970s.
The Burnett name is synonymous with the area, with George Burnett – the son of bakery founder Alex – serving as the City of South Perth Mayor for more than 20 years from 1968 to 1989.
A recent rezoning by the modern-day council permits future mixed-use development at the property, on the corner of Preston Street and Labouchere Road and a short walk from Como Beach.
CBRE’s Aaron Desange and Nicholas Volk have been appointed to sell the site by the Burnett family, with Expressions of Interest invited before May 12.
“The property has been held by the same family since 1927, and never formally offered to market,” Mr Desange said.
“We are expecting strong interest from investors, as assets of this nature, providing a core income return profile and substantial future development upside, are extremely rare.
“The IGA and Karalee on Preston trade exceptionally well given the high exposure the centre offers. This is highlighted by tenants opting to stay in occupation, with some now into their third lease cycle.”
Between the Kwinana Freeway and Canning Highway, Como’s historic Preston Street is also home to the 1938 art deco Cygnet Cinema and a range of popular local cafes.
“Convenience-based retail assets remain a draw for investors, given their defensive income stream and demand profiles,” Mr Volk added.
“With the current lack of a full-line supermarket in the immediate catchment area, 25 Preston Street is a high-traffic, drawcard activity centre for the Como neighbourhood.
“The site has recently been rezoned, allowing for a multitude of uses and a maximum development height of up to eight storeys, and significant flexibility and upside for an incoming purchaser.”
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