Greenpool Capital and Savills Investment Management have bought the Forest Lakes Shopping Centre in Perth’s south-eastern suburbs for $81.5 million. 

The shopping centre had 14,577 sqm of gross lettable area and was situated in the inner suburb of Thornlie, about 15 kilometres from the Perth CBD. 

The asset was anchored by Coles, Woolworths and Aldi supermarkets, and featured 42 additional speciality shops, with a weighted average lease expiry of eight years. 

The Forest Lakes deal was the third retail acquisition for Perth-based Greenpool Capital, following its purchases of North Adelaide Village in Adelaide and Runaway Bay Shopping Centre on the Gold Coast since December 2020.   

“The centre is 97% occupied, has an MAT of $128.8 million with specialty productivity 14% above benchmark, it trades at a remarkably low specialty occupancy cost,” Brad Osborne, Managing Director of Greenpool Capital, said.   

“Neighbourhood shopping centres continue to prove resilient in a post-pandemic era, offering superior risk adjusted returns for investors.”   

Greg Lapham, Head of Investment Australia at Savills Investment Management, said they looked forward to furthering the asset’s presence as a focal point for the local community by offering a wide range of daily and essential needs. 

CBRE’s Simon Rooney and James Douglas managed the off-market sale campaign. 

Rooney said the interest in Forest Lakes Shopping Centre underlined the strong demand for non-discretionary assets despite rising interest rates. 

“There remains strong capital demand and therefore liquidity for quality retail assets, particularly assets which are tightly held, with Forest Lakes an example of a deep and broad pool of investors having conviction about an opportunity and pursing it,” he said. 

Douglas said the centre occupied a prominent and land-rich site in excess of 6.6 hectares, including additional sundry, retail-permissible zoned land to facilitate various value-add initiatives over time.  

“The supermarkets are exceptional performers, contributing to in excess of $100 million in sales and are complemented by a relatively low provision of specialty shops, performing above industry benchmarks,” Douglas said.  

The deal comes after SCA Property Group bought the Tyne Square Shopping Centre in Perth for $12 million last month, as part of a larger $180 million portfolio deal comprising five convenience-based shopping centres.