Two high-profile service centre development sites in Western Australia, located midway between Perth and Bunbury on the Forrest Highway, have been acquired by a syndicate arranged by Security Capital Australia.
In a sale negotiated by Chas Moore and Chris Ireland of Savills, the Security Capital Australia syndicate has purchased the two greenfield development sites of 6 hectare each, located directly opposite each other on the Forrest Highway in West Pinjarra WA, approximately 80km south of the Perth CBD.
Security Capital Australia, a Perth-based property investment and syndication group that has been involved in the acquisition, management and sale of more than 40 commercial, retail and industrial properties with a combined value in excess of $400 million, will develop the Forrest Highway sites into two separate highway service station centres, both to be anchored by Caltex.
Security Capital Australia Director Rodney Shea said the Forrest Highway purchase is the first by the group in WA since selling a portfolio of properties to GE in 2005.
After a gap in buying in the lead-up to the GFC, the group has been focusing predominately on the east coast office markets since 2009, with six properties in Sydney and three in Melbourne.
“We are very excited about this project and are looking for similar opportunities in the Perth market,” he said.
Savills has been appointed by Security Capital Australia to market leasing opportunities for national and local fast food operators and convenience-based retailers in the new developments.
Construction of the dual service centres is set to commence in September 2016 with completion scheduled for mid-2017.
It is anticipated that the end value of the developments when completed will be circa $37 million.
“Rare development opportunity”
Chas Moore of Savills said the Forrest Highway sites presented an extremely rare development opportunity given the strategic location and absence of current and future competing outlets on the highway.
“These are the only sites approved for service station and retail development along the entire Forrest Highway,” he said.
“The Forrest Highway has been in desperate need of petrol and convenience retail stops, and these two prominent sites are ideally positioned to service that demand from both north and south bound travellers.”
Chris Ireland of Savills said the high-profile exposure of the sites, their positioning within 100km of the Perth CBD, and no surrounding competition generated strong interest from developers and also from a range of retailers.
“Anchored by Caltex, the dual centres now present a range of opportunities for national and local fast food and convenience-based retailers to secure prime positions in the new developments,” he said.
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