Harbour Town sold for $205m

The Harbour Town shopping centre in West Perth has been sold for $205 million to Singapore developer Far East Organisation.

The sale price is around 20 per cent higher than the $165 million figure flagged when the centre was put up for sale in August and reflects a fully leased initial yield of around 7 per cent.

Simon Rooney of Jones Lang LaSalle acted on behalf of the shopping centre's owners, the Lend Lease-managed Australian Prime Property Fund Retail and joint venture partner the Future Fund, to negotiate the sale.

The centre is understood to have been pursued by investors including CFS Retail Property Trust, Dexus, and LaSalle Investment Management.

"This most recent transaction of Harbour Town Perth further emphasises the inflow of foreign investors and their demand for major retail assets within the attractive Australian market," Mr Rooney said.

He said the proportion of offshore buyers in the retail property investment market was running at more than double the 10-year long-term average for the retail sector of 10 per cent.

The Harbour Town purchase remains subject to approval from the Foreign Investment Review Board.

The centre is the only outlet shopping centre in Perth, stretching across more than 21,000 square metres and comprising around 120 outlet stores.

Its annual income is reported to be around $12 million.