Barings acquires A$74 Million Perth Large Format Retail Centre, Joondalup Square

Late last year, global asset management firm, Barings, acquired Joondalup Square, a high-quality Large Format Retail centre in Perth, for $74 million, on behalf of its diversified Australia value add strategy.

With the acquisition, Barings successfully completed its fourth Australia value add strategy, which has focused on industrial, Large Format Retail, and counter-cyclical office investments since 2010. The firm is now preparing to launch its fifth strategy, aiming to capitalise on favourable market conditions.

Located 26 km north of Perth’s CBD, Joondalup Square spans 13,216 sqm across three freestanding buildings on a 27,598 sqm site. The centre is fully leased, with a weighted average lease expiry (WALE) of 6.1 years by income. It houses 19 tenants, including major national and ASX-listed retailers such as Amart Furniture, Beacon Lighting, Bedshed and Barbeques Galore. The asset benefits from strong foot traffic, amplified by its co-location with a new-format Bunnings Warehouse.

Gareth Price, Managing Director of Capital Transactions at Barings, highlighted the strategic appeal saying, “We are delighted to acquire our first high-quality Large Format Retail asset in Perth in the heart of the Joondalup retail precinct. We are attracted to the industrial-like characteristics of large land area, great access and visibility, buildings not over capitalised, quality tenants paying sustainable rent, and additional development potential.”

Joondalup is a major town centre c26km north of Perth CBD and is one of the most established and largest warehouse retail precincts in Perth, benefiting from strong population growth and surrounding major infrastructure (Edith Cowan University, Joondalup Health Campus, Lakeside Joondalup Shopping Centre, HBF Stadium, WA Police Academy and North Metropolitan TAFE).

James King, Senior Director of Portfolio Management at Barings, emphasised the significance adding, “We are pleased to achieve this important milestone for our investors of the Strategy being fully invested. As a relatively sector agnostic investor, in the current market dynamics, we are continuing to see relative value opportunities across the major markets that our successor value add strategy will seek to take advantage of in 2025.”

The transaction was brokered by Cygnet West and Colliers. Wayne Lawrence, Partner at Cygnet West, described the December deal as a standout transaction, “It is an absolute thrill to be capping off 2024 with the largest national Large Format Retail centre transaction of the year.”

James Wilson, Head of Retail Middle Markets (Australia) at Colliers, added, “Joondalup Square was the first metropolitan Large Format Retail centre sold in 2024, as reflected by over $700 million in value of unsatisfied capital targeting the tightly held retail sub-sector.”

With this acquisition, Barings strengthens its presence in Australia’s Large Format Retail and industrial property market, setting the stage for new investments in 2025.