The investment group has added Drovers Marketplace to its stable of assets.
Baron Vanilla Management has bought Wanneroo retail centre Drovers Marketplace for $26 million from Ray Jackson.
The centre, at 1387 Wanneroo Road, sits on 16,388 square metres of land with 343 car bays and is anchored by liquor retailer Dan Murphy’s and Drovers storage facility.
Ray White Commercial WA agents Michael Milne and Brett Wilkins brokered the off-market deal on Mr Jackson’s behalf.
“A 1,500sqm Dan Murphy's liquor outlet is an obvious blue-chip covenant that underpins this centre,” Mr Milne said.
"Drovers Wanneroo also presents as a unique 'hybrid' large format retail centre, due to its versatile range of draw cards including a swim school, childcare centre, fitness, steakhouse restaurant and a major basement level self-storage facility.”
Mr Ashton described the acquisition as a no brainer for Baron Vanilla Management, due to its strong fundamentals.
"Baron Vanilla selected the property due to its high exposure location positioned on the major intersection of high traffic volume Wanneroo Road and Joondalup Drive and the diverse tenancy mix providing income security and strong income generation, ” he said.
“Add to this the significant land holding of almost 3ha, 100 per cent occupancy and the long weighted average lease expiry of 7.5 years, this syndicated investment was filled within a matter of days.”
The property was sold with a $2 million per annum rental income with a weighted average lease expiry of 7.91 years.
The income increased to $2.1 million at settlement, reflecting an 8 per cent annual yield.
Earlier this year, vendor and property developer Mr Jackson lodged a claim against Main Roads Western Australia for $5.92 million for economic damages to Drovers he says were caused by delays in construction of the Wanneroo Road-Joondalup Drive interchange.
Construction of the road, as part of the state and federal government’s $2.3 billion investment into road infrastructure, was complete in 2020 after some delays.
Earlier this month, Baron Vanilla Management bought West Leederville aged care facility Emerald Life for $12 million.
