<p>Woolworths Aveley Shopping Centre enjoys a strategic position in the heart of Aveley, a rapidly growing north-eastern suburb located approximately 28km from Perth CBD. As part of the Stockland Vale development, this location has experienced <strong>remarkable growth with population increasing 170.4% between 2011 and 2021</strong>.</p> <p>The suburb adjoins the prestigious Swan Valley Region, renowned for its wineries and standing as a major tourism driver for Western Australia. Residents enjoy excellent amenities with nearby schools including Aveley North Primary School, Nido Early School, and Ellenbrook Secondary College.</p> <p>The area is set to benefit significantly from a <strong>$100 million government investment</strong> to create a new major interchange along the Tonkin Highway, which will further enhance connectivity between Aveley, Perth CBD, and Perth Airport.</p> <p>Western Australia continues to outperform other states economically with 4.7% Gross State Product growth (double the national rate) and ranks as Australia's #1 state for population growth in 2023. The state's strong economic fundamentals are underpinned by its resources sector, with WA accounting for 46% of Australia's total exports, valued at $275 billion in 2023.</p>

<p>The centre is anchored by <strong>Woolworths and BWS</strong> occupying 3,665 sqm, which commenced their lease in July 2018 on a 12-year initial term with 10 further options of 5 years each. Woolworths Group is an ASX-20 listed company and Australia's largest supermarket operator with over 1,400 stores nationwide and 190,000+ team members.</p> <p>The supermarket recently posted strong half-year 2024 results with a 4.4% increase in sales and a 5.3% increase in EBITDA. As a world-class covenant tenant, Woolworths provides exceptional income security and customer drawing power.</p> <p>Complementing the supermarket are <strong>8 specialty shops</strong>, a freestanding medical centre, and ATM, creating an ideal tenancy mix for a neighbourhood centre. The specialty tenants include Terry White Chemmart and various service providers that enhance the overall convenience-based offering.</p> <p>The centre features a childcare facility co-located on site and a fuel station, further increasing customer traffic and creating a complete neighbourhood service hub that meets the daily needs of the growing local population.</p>

<p>The Woolworths Aveley Shopping Centre presents a compelling financial investment opportunity with a fully leased net income of <strong>$1,826,782 per annum</strong>. The property maintains an impressive <strong>100% occupancy rate</strong> by area and 99.7% by income.</p> <p>The income profile is anchored by Woolworths Group Limited, providing exceptional tenant covenant strength with 56.2% of income secured by Australia's largest supermarket operator. Woolworths commenced their 12-year lease in July 2018, currently paying a base rental of <strong>$1,308,568 p.a.</strong> with rent reviews every 5 years and 10 further terms of 5 years each available.</p> <p>The weighted income to Woolworths represents 74.5% by area, creating an ultra-secure investment profile with non-discretionary retail focus. The rent review structure for Woolworths includes a percentage rent formula that provides potential upside as the centre's performance grows, with various thresholds based on turnover.</p>

<p class="mb-4">Please refer to "Background documents"</p>

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