Rare investment opportunity in Claremont
2 St Quentin Avenue, Claremont in WA will be viewed by the market as an investment safe-haven located in a tightly held precinct
PERTH - Joint selling agents JLL and CBRE are bringing to market a rare opportunity to acquire a significant retail investment asset in a tightly held precinct. 2 St Quentin Avenue, Claremont is being offered through a public Expressions of Interest campaign by JLL’s Senior Director Nigel Freshwater and Director Sean Flynn, and CBRE’s State Director, Richard Cash.
Claremont is the commercial and retail hub of Perth’s affluent western suburbs. With a core town centre landholding of 1,453sqm and total lettable area of 1,069sqm, 2 St Quentin Avenue is in a highly visible position on the corner of St Quentin Avenue and Bay View Terrace, directly opposite Claremont Quarter, with over 90 meters of prime retail frontage.
The property is offered 100% fully leased, with its income stream being underpinned by some of the nation’s major banks - Commonwealth Bank of Australia, Westpac, NAB and Bankwest supported by specialty retail fashion operators Spectator and Tokay.
Nigel Freshwater said, “The strong tenant covenants are considered to transcend the COVID-19 conditions. WA has avoided the worst of the COVID-19 crisis, illustrating our strong State Government response and a sense of comparative stability in WA as a bankable investment.
“Historic low interest rates have created conditions that are ripe for a product such as this which offers income security and the likelihood of a reasonable margin to borrowing rates.
“2 St Quentin Avenue, Claremont is a rare investment opportunity with scale not experienced in the area for quite some time and it will be viewed in the market as an investment safe-haven located in the tightly held precinct,” said Mr Freshwater.
Richard Cash said, “There is evidence in the market of increasing investor support for non-discretionary retail assets with low exposure to vacancy risk, such as free standing supermarkets, service stations, with banking chambers expected to be viewed similarly. With a net income of circa $1,350,000 per annum, the property provides a rare opportunity to secure a significant income backed by a WALE approaching 5 years.”
Sean Flynn explained, “We don’t think it will be lost on the market in this case that 2 St Quentin Avenue is centrally located opposite Claremont Quarter, so it’s no coincidence that these four major banking players have congregated here.”
The financial services sector is usually considered to be a safe and reliable covenant when it comes to real estate, said JLL’s Strategic Research Manager, Ronak Bhimjiani.
“The COVID-19 pandemic has inevitably changed the demand landscape as far as office leasing is concerned. However, the fundamental concept of a trusted institution acting as a store of value and a facilitator of transactions is not going to go away. Therefore having a property already anchored by four financial market heavyweights increases its value proposition immensely,” said Mr Bhimjiani.
With significant capital expenditure invested into the property and recent tenant fit-out refurbishments underway or completed, the property presents as a new-build with contemporary facade and expansive retail display windows.
There is significant planned development in the Claremont area with a key multi-million-dollar infrastructure project underway at Claremont station, and the arrival of nearby Claremont on the Park is seeing a further 750 new homes increasing foot traffic to the area.
Expressions of Interest for 2 St Quentin Avenue, Claremont close Thursday 12 November 2020 at 2pm (AWST).
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.