The busy western suburban shopping centre leased to gourmet supermarket and local institution The Herdsman has sold for $8 million to a local private investor.
The 5684sqm Churchlands market is on three titles on Pearson Place and Flynn Street and was sold by Cerino, which owns The Herdsman supermarket, the anchor tenant with a 10-year lease at the shopping centre.
CBRE selling agents Richard Cash and Andrew Woodley-Page said the sale price represented a yield of about 8 per cent.
Mr Woodley-Page said as expected for such a well-known property in a blue-ribbon location, the sale of the Herdsman generated a large number of bids.
"This transaction, together with a number of sub-regional and neighbourhood centres we have completed this year, reinforces the strong investor sentiment and appetite for Perth retail property because of the nation leading fundamentals of the WA economy and local property markets," Mr Woodley-Page said.
Mr Cash said the deal was underpinned by a 10-year leaseback to the seller, which is one of Perth's most successful gourmet fresh produce operators.
"The specialty retailers trade outstandingly well and sales are significantly in excess of industry averages," Mr Cash said.
So far this year, CBRE has sold sub-regional shopping centres - Wanneroo Central and Stirling Central, neighbourhood centres - Carramar Village and Duncraig Shopping Centre and has the bulky goods complex Rockingham Superstore under contract.
The Herdsman, previously known as Herdsman Growers Market, opened its doors in 1979 to supply fresh produce to the residents of the western suburbs.