Woolworths sells Banksia Grove shops for $27m

Woolworths has offloaded a recently-built Banksia Grove shopping centre for $27 million, with an unnamed Singaporean investor securing the asset after a highly competitive sales campaign.

The supermarkets giant placed the centre, which has a net lettable area of 5,712 square metres and 11 specialty stores, up for sale earlier this year, expecting to achieve a sales price of around $35 million.

Commercial agency CBRE brokered the deal via an expressions of interest campaign, which attracted more than 90 enquiries and seven offers.

CBRE's Anthony Del Borrello said the transaction price represented a square metre value of $4,768 and a passing yield of 5.96 per cent.

Mr Del Borrello said the sale also illustrated continuing strong demand for Western Australian retail assets, particularly over the past 12 months.

"In this time, over $70 million worth of retail assets have transacted, including Kelmscott Plaza at $19 million and Coles Vasse, which sold for $19.6 million," he said.

"Both properties were acquired by private Asia-based investors.

Mr Del Borrello said investors based in South-East Asia were attracted to WA assets because of the state's geographical proximity and shared time zone.

Meanwhile, a Melbourne-based property developer has put a new Puma service station in Baldivis on the market, with CBRE's Richard Cash, Joseph Du Rieu and Mr Del Borrello to run a national sales campaign.

Mr Cash said the agency was expecting a high level of demand from local investors as well as interstate groups.

"This will be underpinned by the very secure, 15-year initial lease term and by the fact that many private investors view new service stations as a stepping stone into the retail investment market," Mr Cash said.