Drovers Marketplace sold for $26 million

A prominent Wanneroo retail centre has been snapped up for $26 million.

Located at 1387 Wanneroo Road, Drovers Marketplace comprises 16,388sqm with 343 car parking bays.

The retail centre was acquired by prominent Western Australian syndicator Baron Vanilla Management spearheaded by director Miles Ashton.

The off market deal was brokered by Ray White Commercial WA agents Michael Milne and Brett Wilkins on behalf of prominent builder and developer Ray Jackson.

The retail centre is anchored by a large Dan Murphy’s and a major subterranean lower level Drovers Self Storage facility.

Other major lease covenants include Surge Fitness, a childcare and after school care centre, Spur Steak & Grill, Good Samaritan Industries, and an indoor Swim School WA.

Mr Milne said major retailers favoured Perth’s thriving northern corridor.

“A 1,500sqm Dan Murphy’s liquor outlet is an obvious blue chip covenant that underpins this centre,” he said.

“Drovers Wanneroo also presents as a unique ‘hybrid’ large format retail centre, due to its versatile range of draw cards including a swim school, child care centre, fitness, steakhouse restaurant and a major basement level self storage facility.”

The centre’s net income was initially $2 million per annum reflecting circa 7.7 per cent per annum net when first negotiated, but fortuitously increased to $2.1 million per annum being 8 per cent per annum net by settlement.

Mr Ashton said the acquisition was attractive for Baron Vanilla Management due to its strong

“Baron Vanilla selected the property due to its high exposure location positioned on the major
intersection of high traffic volume Wanneroo Road and Joondalup Drive and the diverse
tenancy mix providing income security and strong income generation, ” he said.

“Add to this the significant land holding of almost 3ha, 100 per cent occupancy and the long
weighted average lease expiry of 7.5 years, this syndicated investment was filled within a
matter of days.”

This is the sixth property syndicate established under the Baron Vanilla banner since 2021
and the twenty-second property syndicate to be established by the group, growing combined
assets under management to in excess of $200 million.

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