Property News: Perth

In a challenging market faced with high vacancy rates, Pro Property Group have successfully negotiated terms for a 35-year lease commitment with Krispy Kreme, which will open its new store in Cannington in mid-2021.

This flagship store will be situated over 2,000sqm of rare Perth land following the recent City of Canning development application approval. The 1441 Albany Highway store will mark the company’s fourth store in WA, which is most notably known for its glazed doughnuts.

A spokeswoman for the new Cannington store stated that the new development is a win for the local economy.

“We are engaging a local medium to large size builder and they are likely to engage various contractors for around 50 to 100 tradespeople on site in various stages of the project,” she said.

“Once the store opens, we estimate there will be 50 permanent retail jobs.

 “It’s hard to say exactly when the new store will open due to the current COVID situation, but we are targeting early 2021.”

City of Canning mayor Patrick Hall also threw his support behind the new store, with an online post that stated;

“At a time of economic uncertainty and record unemployment, this project will employ up to 100 contractors during the construction phase, inject significant investment into our local economy, and once open the store will employ up to 50 staff... hopefully many of them local residents.

 “The decision by Krispy Kreme to choose Canning illustrates this City's reputation as a vibrant commercial area, and Council's decision demonstrates our strong support for the business sector."

ProProperty Group agents Christopher Tana and Ray Cafini sold the property as a leased investment, with a 5.8% yield, before securing the property’s management.

“The property located at 1441 Albany Highway Cannington, has been a landmark of the precinct for many years, trading as a prominent car dealership since the 80’s,” Mr Cafini noted.

“Sold at close to $2.4 million, the price achieved was deemed to be a strong result given the current uncertain market conditions, but represented a strong initial yield for the buyer, given the strength of the lease, the built-in rental increases in that lease and the substantial size and reputation of the lessee.

“The appeal of the thriving Cannington City Centre with its large and diverse trading hub, the attraction and sheer size of the Carousel shopping complex and the strong passing vehicle traffic on Albany Highway was a major factor influencing both the Lessee and the Purchaser’s confidence in committing to deals.

 “A major international tenancy in Krispy Kreme entering into a long-term commitment within the Cannington City centre shopping hub will further enhance and strengthen this diverse and buoyant business precinct and should reflect positively for future Property and Leasing values.