Two major supermarket deals collectively worth $627 million in Perth within just two days of one another signal a renewed confidence in the retail sector.
QIC has sold its stake in Perth’s Claremont Quarter mall to Hawaiian for $207 million while Vicinity spent $420 million to purchase a half stake in Lakeside Joondalup.
The Claremont Quarter deal is the latest major retail transaction in Western Australia, with over $1.6 billion in deals completed since the beginning of 2023.
The most recent deals include Lakeside Joondalup, Midland Gate for $465 million to Fawkner Property and PAG, Maddington Central for $107 million to Realside, Halls Head Central for $70 million to Centuria, Dianella Plaza for $76.25 million to Greenpool Capital, and GIC’s 50 per cent interest in Westfield Whitford City for $180 million to JY Group.
QIC Director of Real Estate Capital Markets James Doneley said the deal to sell its 50 per cent share of Claremont Quarter in Western Australia, further showcased QIC’s ability to deliver successful transactions on behalf of investors.
“While still subject to FIRB approval, the pending purchase price was above QIC’s book value, which, if executed as planned, will be a very pleasing result for our investors and QIC,” Mr Doneley said.
“Moreover, the strong response to our Expression of Interest campaign in the past fortnight demonstrates that confidence is returning to the broader retail sector.”
Richard Kilbane, COO of Hawaiian, said they are immensely grateful to QIC for their partnership and the remarkable achievements they have accomplished together at Claremont Quarter over the past 11 years.
“Their contributions have been instrumental in helping to shape Claremont Quarter into the vibrant centre it is today.
“As we move through the formal settlement process, we are excited about the future and what this means for the centre and our community,” Mr Kilbane added.
Vicinity’s CEO and Managing Director, Mr Peter Huddle said Lakeside Joondalup had been a target for some time.
“Lakeside Joondalup is a fortress-style retail asset located in one of Perth’s principal activity centres and has been on our target list for some time.
“In an environment of rapid population growth and limited supply of new retail, the investments we are making today are positioning Vicinity and its securityholders for long-term, sustained growth.”
Located 25km north of Perth CBD, Lakeside Joondalup boasts a H&M, Myer, Mecca Maxima and more than specialty 300 stores, and has long been the retail hub of the Joondalup community.
CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney the two deals signals the “strengthening demand for regional shopping centres following a market recalibration”.