Centuria Capital Group has laid down around $70 million to pick up a sub-regional shopping centre in WA.
The Australian real estate funds manager, has added Halls Head Central, at Mandurah, 75km south of Perth, to its $3.2-billion in retail assets under management with the acquisition.
The 19,373sq m centre is anchored by Coles and ALDI supermarkets, and a Kmart.
The centre also has two mini-majors, 50 speciality shops and two freestanding pad sites, on-grade parking for 960 vehicles, an enclosed air-conditioned mall, Wi-Fi, modern toilet and parenting facilities, children’s playground and an alfresco dining precinct.
Across the centre, 64 per cent of gross income is generated from non-discretionary tenants and the asset attracts 2.4 million customer visits annually.
The asset provides a 3.3-year WALE and 100 per cent occupancy.
Halls Head Central is on Old Coast Road, the central arterial roadway connecting regional hubs Rockingham and Bunbury.
It occupied 22 per cent of its 9ha site, providing potential development or land-banking opportunities across about 10,000sq m of surplus land, Centuria said.
The counter-cyclical retail asset was secured about 40 per cent below its independently assessed replacement cost, the fund manager said.
Centuria joint chief executive Jason Huljich said Hall Head Central “provides a compelling, counter-cyclical investment opportunity within WA’s second largest city”.
“WA remains a standout state for retail property. Greater Perth’s population has increased by 3.6 per cent throughout the previous 12 months, and when coupled with low forecast retail supply and vacancy, it provides compelling fundamentals for the retail sector.”
Centuria head of retail Bruce McCully said the centre was the group’s third retail asset within the City of Mandurah.
“Centuria has deep market experience within the region, actively managing the Erskine Shopping Centre and Mandurah Greenfields Shopping Centre,” McCully said.
“With limited new supply of retail assets, due to construction supply pressures, coupled with a strong population growth, we believe tenant demand will continue to outstrip supply for well-maintained sub-regional shopping destinations across Western Australia.”
Settlement is anticipated in July. CBRE’s Simon Rooney and James Douglas were the appointed sales agents.
Rooney said the transaction “demonstrates continued demand, particularly by private capital for sub-regional assets with a focus on non-discretionary spending, particularly those which offer strategic value-add opportunities.”
