A fully-leased local neighbourhood centre in Perth’s south has sold for $5.3 million in an off-market deal, demonstrating ongoing demand for retail property.
The property, known as the Rostrata 7 Day Centre, situated at 46-48 Rostrata Avenue in Willetton, was purchased by Alliance (WA) Pty Ltd, a local family group, from Bannatyne Holdings Pty Ltd in a deal negotiated by Jonathan Wong and Tony Delich of Knight Frank.
The centre has nine retail tenancies, including an IGA and bottle shop. It is currently fully leased, however the IGA and bottle shop businesses are owner-operated and are included in the sale.
The property has around 25% site coverage, with 977sq m of net lettable area on the 4,001sq m site and 70 car parks. It has a fully leased net income of $361,511 per annum.
Mr Wong said the property sold via an off-market campaign, with the buyer sourced from Knight Frank’s extensive investor database.
“The Rostrata 7 Day Centre is in a sought-after location, next to the Rostrata Primary School, Willetton Community Garden and in the heart of Willetton’s residential neighbourhood.
“This means it has a large, established population to provide a solid customer base, which will secure the tenancies and underpin the property’s value and returns moving forward.”
Mr Delich said: “There is a strong appetite from buyers to secure retail investments given this asset class performs in good and bad times. It is rare to source a small shopping centre in Perth under $10 million, so we had no issue in placing this property off-market and to an existing IGA operator.”
Knight Frank’s recently-released Australian Retail Review found the outlook for the retail sector was increasingly positive following a challenging period, with conditions in place for growth from 2025.
It found positive signs for the sector included improving retail sales and the return in asset value growth.
The Knight Frank report found improving investor sentiment in the retail market in response to recent evidence of a resilient trading performance from the major centres and retailers had led to increased investment in retail property.
Total investment volumes in the retail sector rebounded strongly in 2024 with $9.9 billion traded, up 39% from 2023. WA made up $1.4 billion of this.
Investment volumes have been strong over Q1 2025 with $2.9 billion of assets traded, with WA accounting for $570 million.
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