Strengthening investment demand for convenience-based retail has sparked the sale of a big-box liquor store in Perth’s southern suburbs for $7.65 million.
Western Australian-based property syndicate, Mair Property Funds, acquired the First Choice Liquor outlet at 4 Olive Road, Falcon – located southwest of Mandurah and approximately 80km from the Perth CBD.
The property, comprising a land area of 2,945sqm, features a 1,234sqm liquor store currently leased on a 15-year term to the Wesfarmers-owned First Choice Liquor. A further three 10-year terms are available.
CBRE’s Richard Cash and Anthony Del Borrello negotiated the sale on behalf of vendor Redcliffe Holdings, reflecting a land rate of $2,598 per square metre and building rate of $6,199 per square metre.
Mr Cash said the transaction highlighted the strengthening appeal of convenience-based retail.
“Convenience-based retail that offer attractive tenancy profiles are among the most sought after assets in the current market. The Falcon First Choice Liquor represented an outstanding opportunity given its position in Perth’s southern growth corridor and coveted lease profile to an ASX-listed tenant,” Mr Cash said.
Mr Del Borrello said proposed new State Government legislation to limit big box retail across the state had helped strengthen values for existing properties.
“The State Government’s announcement earlier this year to limit the number of new big box retail stores is helping position these properties more favourably in the market by limiting development of these types of assets and subsequently strengthening values,” Mr Del Borrello explained.
The property sits benefits from a high exposure corner location opposite the Woolworths-anchored Miami Plaza Shopping Centre.
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