Retail Centre Greenlit for WA Growth Hotspot

A neighbourhood shopping centre has been greenlit for a southern Perth suburb as the first stage of the development opens.

Approved at Anketell by the Joint Development Assessment Panel on May 2 was the supermarket-anchored centre that also includes 15 shops, two offices and a cafe.

The supermarket will occupy 2549 sq m while the retail and commercial components will cover 1600 square metres.

Stage 1 of the development at 793 Thomas Road, 33km south of the WA capital’s CBD, which includes a service station and fast-food restaurant, has opened, with the service station, a United Petroleum outlet, now on the market.

The 2904sq m site is available through an expressions-of-interest campaign. 

United Petroleum has signed a 15-year lease on the site, which will be sold as a leased investment with the commencing net rent set at $335,000 a year.

The entire project is being led by Burtonwood Investment Partners Trust and developer Saracen Properties.

Burtonwood Investment Partners managing partner Chris Weaver said that the area was an emerging south metro commercial hub thanks to its prominent position off the Kwinana Freeway and on the major connector road for the future Westport, which will take over from Fremantle as WA’s cargo container hub.

“With a $6-million road upgrade, the precinct is well-connected to major arterial networks, and as a result we have already experienced a spike in activity with major commercial and retail infrastructure mooted for land surrounding the Burtonwood-Saracen Town Centre development,” Weaver said.

“United Petroleum and McDonalds Anketell are the first landmark tenants in the area since the opening of Perth’s second Costco store in 2023, and we’re preparing for significant growth from here.”

According to online records, the 35,570sq m site was sold for $3.3 million in 2021.

▲ The office block at 104 Frome Street in the Adelaide CBD.

Meanwhile, a five-level office block in Adelaide’s CBD has sold in the sector’s biggest transaction in the SA capital for a year, according to JLL South Australia, which handled the sale.

The building at 104 Frome Street was sold to an SA-based private syndicate for $14.2 million, reflecting an initial yield of 6.88 per cent.

The block provides modern floorplates that have been substantially renovated, and is close to Rundle Street, Hutt Street and the eastern Adelaide Parklands.

It comprises 4387sq m of office (NLA) with 53 onsite carparks on a 1693sq m site and provides a passing income of $977,177 with a 1.86 year WALE.

JLL head of capital markets, South Australia, Ben Parkinson said the property, sold on behalf of a private investor, had garnered more than 100 enquiries, “reflecting a renewed interest in the Adelaide office market and the strong economic performance of South Australia”.

Parkinson said the price point had been attractive for a range of groups, including private investors, local and interstate syndicates and owner-occupiers, as it represented strong value considering the current construction costs.

“Increased construction costs and increased interest rates have impacted development feasibilities and therefore good quality existing stock, at these pricing levels, provide an attractive purchasing opportunity,” he said.