Perth in focus in shopping centre buying spree

The city of Perth is said to be the most remote major capital city in the world.

So when the Collie Central Shopping Centre was offered for sale in November 2023, the fact that it was the only shopping centre within a 45km radius for the local population gave it a unique selling point. It ultimately sold in May 2024 to the Queensland-based fund management company Natgen for $10 million.

Collie Central’s remoteness may have provided some novelty factor, but the reality is that investors – private investors in particular – can’t get enough of suburban supermarket-anchored shopping centres.

This real estate type is considered resilient amid the current economic uncertainty thanks to the stable income provided by its supermarket and other convenience-based tenants, such as butchers, bakeries, and chemists.

Encompassing high net-worth individuals, small partnerships, family offices and syndicates, private investors have accounted for 75% of neighbourhood shopping centre purchases in WA over the 12 months to March 2024, with an average deal size of $28.2m, according to JLL research.

The relatively low price point of neighbourhood shopping centres, which typically sell between $10m - $40m in WA, has seen this cohort dominate.

More recently, interstate and offshore interest has been noticeable amid the established fraternity of local seasoned private investors.