Sale is talk of the terrace

Aug 21st, 2014

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Article by:
Marissa Lague

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A big contingent of investors is expected to be among the bidders when a property in one of Perth's most tightly held retail precincts is auctioned in October.

The Claremont property will be auctioned by Lease Equity, which said the high-end precinct and secure lease to an international fashion retailer would draw strong interest.

Located at 14 Bay View Terrace, the property is leased until 2017 to international retailer Mimco, a luxury bag and accessories boutique with 92 stores nationally and five in New Zealand.

Lease Equity managing director Jim Tsagalis said the location was second to none.

"Bay View Terrace rivals some of the best suburban strip shop precincts in Australia and is always on the must-have list for leading retailers," Mr Tsagalis said. 'All the fundamentals are there -
the surrounding catchment boasts some of Perth's most prestigious residential suburbs, including seven of Perth's most exclusive private schools, so there is a high level of expendable income.

"It's serviced by Stirling Highway and the Claremont train station and there is an abundance of parking in the area.

"It's extremely accessible for patrons."

The single-level strip shop sits in the heart of the terrace's shopping area, opposite the Claremont Hotel and the entrance to Claremont Quarter.

Lease Equity director of capital markets Luke Pavlos said Bay View Terrace was one of, if not the most, tightly held suburban retail strips in Perth.

"Sales along the strip are rare," Mr Pavlos said.

"The owner has held the property since 1996 and the last sale in the precinct was in 2012."

Mimco is owned by Country Road and has been trading from the property for more than eight years.

"It's not everyday assets of this quality become available," Mr Pavlos said.

"Not only will the buyer benefit from long-term capital growth but single tenant properties with a covenant as strong as Mimco are an extremely rare commodity.

We are expecting the property to generate a lot of interest in the market.

"Current cash and bond rates are at record lows so there are a lot of buyers looking to invest money into blue-chip assets which will provide long-term growth."

The property will be auctioned at Perth Town Hall October 2. 

Source: The West Australian, Property Section, 20th August 2014

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