Midland HomeCo sells for $75m

PWD has bought HomeCo Midland for $74.75 million from HomeCo Daily Needs retail investment trust, in the biggest large format retail transaction since late last year.

The large format retail centre, with 23,400 square metres of lettable space, is located about 15 kilometres from Perth CBD, in the burgeoning large format retail district.

PWD, led by Primewest founders John Bond and David Schwartz, John Bond’s son Banjo Bond, and experienced property player Rob Thomas, bought the asset from ASX-listed HomeCo Daily Needs REIT.

JLL joint head of retail investments Nick Willis, JLL head of national retail investments Sam Hatcher and Vend Property managing director Jeff Klopper brokered the deal.

Mr Willis said given the strong performance of the large format retail sector, there was continued strong demand for these assets across the country.

“We are continuing to see demand from well-capitalised parties able to transact,” he said.

“However, amassing portfolios of scale is difficult with investment supply of institutional-grade assets tightly held, as the majority of the market is controlled by a handful of players.”

JLL head of capital markets Andrew Quillfeldt said large format retail had benefitted from an increase in non-discretionary spending during the past few years.

“The cyclical surge in retail spending on household goods from a variety of factors including home renovations, has resulted in sales growing by 24 per cent since the start of 2020,” he said.

“That has been supportive of rental reversions within the sector.”

PWD founding director Banjo Bond described the asset as irreplaceable, with income underpinned by major national tenants including JB-Hifi and Officeworks.

“The investment proposition is highly compelling with retail trade in WA remaining the most robust in the country,” he said.