A neighbourhood shopping centre in Perth’s southern growth corridor is up for sale.
Port Kennedy Central at 397 Warnbro Sound Avenue in Port Kennedy, in the City of Rockingham, is being taken to the market via an Offers to Purchase campaign run by Knight Frank agents Cory Dell’Olio, Tony Delich and Chris Maher.
It is being sold by a private family, with price expectations in the mid $20 million.
The property comprises a quality local neighbourhood centre with approximately 7,998sq m of gross lettable area on a prime site of 1.9 hectares. It has 364 car parks.
The centre is anchored by a strong trading IGA and has flexible tenancy options with its mix of retail, service, food and beverage and small office opportunities.
Other tenants include Cellarbrations, Gold’s Gym, Port Kennedy Pharmacy, Kennedy Bay Medical Centre and Rental Management Australia (RMA).
Port Kennedy Central is positioned on the corner of Warnbro Sound Avenue and Endeavour Drive, situated 55 kilometres south of the Perth CBD, and only eight kilometres south of Rockingham Town Centre.
It is only 2.5 kilometres from the new ‘Kennedy Bay’ development – set to deliver 900 residential lots on the beachfront of Port Kennedy in a staged process starting within the next 12 to 18 months – which will significantly increase the shopping centre’s catchment base.
The estimated fully leased net income is $1,577,706 per annum, with the WALE by income being 4.7 years.
Mr Dell’Olio said the shopping centre was expected to generate strong investor interest, with one of the key drawcards being its growing patronage.
“Port Kennedy Central is in a major growth area, so the catchment base will continue to increase,” he said.
“It is also in a highly visible and prominent corner location, and situated on the major arterial of Warnbro South Avenue, with around 15,000 vehicles passing by every day.
“As well as being close to the Kennedy Bay development, which it will directly benefit from, the neighbourhood centre is also close to several schools and the HMAS Stirling naval base at Garden Island which is set for a major upgrade – another factor that will underpin population growth within the area.”
The City of Rockingham’s current population of 147,140 is forecast to grow by 65 per cent by 2046.
Mr Delich said the property offered a strong WALE and high-level income as reflected in the IGA which will soon hit turnover rental threshold.
“The centre has substantial retailers including IGA and minimal vacancy, with a diverse mix of tenants,” he said.
“There is some scope for future upside by leasing the vacant space, and rental growth will come as the area continues to grow.
“We are expecting a high level of interest from investors during the campaign with neighbourhood centres showing an upward trend in their turnover since COVID, especially with their easy access for consumers making these types of centres so appealing.”
Mr Maher said: “In uncertain times, capital preservation should be front of mind for every investor. Secure income derived from quality tenants as well as physical, tangible land, all of which Port Kennedy Central has, should be at the cornerstone of every portfolio.”
The Offers to Purchase campaign for the property will close at 3pm (AWST) on Thursday, May 4.