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News release


Dominant Subiaco Square Shopping Centre headed to market in six week EOI campaign

6,451sqm neighbourhood retail centre expected to draw strong national and regional investor response

Subiaco's retail centrepiece Subiaco Square Shopping Centre is being offered to the market for sale, through an Expression of Interest campaign conducted by JLL.

Built in 1999 as a focal point of the Subiaco Centro revitalisation project, the 6,451sqm (GLA) neighbourhood centre occupies a prime location within Subiaco Square adjacent to the Subiaco train station and the planned Coles-Target anchored shopping centre at the Station Street Markets site.

360 Capital Investment Management has appointed JLL Head of Sales and Investments WA, Nigel Freshwater and Director Sales and Investments WA, Sean Flynn to manage the six-week campaign which is expected to attract strong interest from local, national and international investors.

Noting the already strongly performing Woolworths-anchored centre fronting Station Street and Subiaco Square Road as a potential sub-regional shopping hub, Mr Freshwater said the property was one of Perth's most marketable near-city retail investments.

"Subiaco Square is already the dominant shopping hub in this affluent catchment, and will be further enhanced by the planned redevelopment of the Station Street Markets while anticipated future residential redevelopment within the precinct including the nearby Domain Stadium and Princess Margaret Hospital sites will further increase the surrounding residential population.

"The property enjoys 100 per cent occupancy and includes a 3,548sqm full-line Woolworths supermarket – the only Woolworths store within the centre's identified main trade area, plus BWS liquor and 17 speciality stores," he said.

Mr Freshwater said that in addition to the compelling investment fundamentals of the centre including a remaining secure lease term of around 8.5 years to Woolworths (plus options) and comparative low average base specialty rents for Subiaco, the centre is a land-rich investment which sits on one of Subiaco's largest privately owned landholdings totalling 9,736sqm.

Mr Flynn said that a recently prepared trade area analysis report by MacroPlanDimasi also highlighted the centre's strong underlying and future retail potential.

"These investigations found that Subiaco enjoys a per capita income about 52 per cent above the Perth metropolitan average while household income was some 22 per cent higher than the Perth metro average.

"Consequently, current per capita retail expenditure is about 18 per cent greater while food, liquor and grocery spend is projected to grow at an impressive 3.9 per cent per annum in coming years," Mr Flynn said.

The MacroPlanDimasi report also noted that the centre's main trade area population was expected to grow strongly from 46,150 to just over 52,000 by 2026, and would be driven by a significant number of high density residential developments in the immediate Subiaco precinct which had been either commenced, approved or proposed.

"Whist the retail performance of this centre is compelling, the site also features strong long term redevelopment or repositioning potential.

"The current zoning in combination with the significant size of the landholding would support inclusion of a high density residential component sometime in the future, and under the current planning regime the additional plot ratio could amount to close to 6,000sqm," said Mr Flynn.

"Also encouraging is the Draft Subiaco Activity Centre Plan which was released for public comment earlier this month.  This document suggest that the maximum plot ratio of the site may increase further to support even greater future residential expansion on the site."

JLL's most recent Perth retail study shows that of the 17 retail assets that transacted over the 12 months to May, ten were neighbourhood shopping centres while neighbourhood rents along with regional and sub-regional rents were expected to show potential growth from 2017.

"Demand for well-positioned and soundly performing retail assets highlights the investment market's long–term perspective. Certainly, retail assets located adjacent to major public transport points in the heart of a retail precinct and surrounded by affluent medium and high density residential are expected to figure prominently in investment decisions," said Mr Flynn.

Expressions of Interest close 3.00pm (AWST) Thursday 28 July 2016.