Two WA neighbourhood shopping centres sold for $8 million+

RWC WA is pleased to announce that director Stephen Harrison has negotiated the off-market sale of two neighbourhood shopping centres located at 273 South Street, Hilton and 241 Lesmurdie Road, Lesmurdie, with both transactions settling in October. The results highlight a clear rise in demand for Western Australian retail assets, with both properties achieving yields sharper than those commonly seen a year ago.

At 273 South Street, Hilton, Mr Harrison secured a sale price of $3,200,000, reflecting a 5.8 per cent yield. The centre was purchased by a local WA investor via a family trust. Generating $186,000 per annum in net rent, the property comprises six tenancies, including key occupiers such as the Minister for Works and Prime Radiology. The vendor was also a local WA investor, and the transaction was completed entirely off-market.

The second transaction, at 241 Lesmurdie Road, Lesmurdie, achieved a sale price of $5,100,000 at a 5.6 per cent yield. The purchaser, an Eastern States doctor buying through a family trust, was drawn to the centre’s strong tenant mix and future development potential. The property delivers $297,465 per annum net income from tenants including IGA, a bottleshop, pharmacy/AusPost, hairdresser, café, and an ATM. The centre offers 884m² of lettable area, circa 52 parking bays, and sits on a 5,061sqm* landholding, with roughly 2,500sqm* of excess land suitable for further development. The seller was a local WA investor.

Mr Harrison said both sales reflect broader trends emerging in WA’s retail investment market. “The yields are sharper than what would have been achieved about a year ago and reflect demand for Western Australian retail assets.”

He added that underlying economic conditions are continuing to support investor confidence. “Demand in this sector is being driven by WA’s strong economy and rapidly growing population.”

Both transactions were completed through off-market brokerage, a method Harrison notes is increasingly effective in the current market, where buyers are actively seeking well-located retail assets with stable income and value-add potential.