Centuria has bought another regional Western Australian shopping centre from the Vukelic family.
Busselton Boulevard, about 50 kilometres north east of Margaret River, set it back $16 million – also the price the Vukelic family paid local investor Phillip Hooper in 2012.
The Centuria deal was also below ($20m) guide when the mall was listed last October.
The buyer will hold the property in a single asset fund – the Busselton Boulevard Shopping Centre Trust – now calling on wholesale investors; set to run five years, the starting annual distribution is forecast to be 7.5 per cent.
It is hoping to raise c$10.7m.
The acquisition comes six months since the manager paid the Vukelic family $15m – reflecting a 6.47pc yield, and another c$5m drop on price hopes – for the Margaret River Shopping Centre.
Centuria also slotted that into a single asset fund – the Margaret River Shopping Centre Trust – set to run 10 years with a forecast 5.75pc initial annual distribution.
Following settlement of Busselton Boulevard in August, the manager will control c$1.7b of daily needs retail product – much which it picked up following its 2021 Primewest takeover.
On 5757 square metres at 69 Prince Street, also with frontage to Kent and a car park off Cammilleri, Busselton Boulevard is 98.6pc occupied.
Containing 4798 sqm across one level, Coles is the anchor, on a lease expiring in 2026 – then with options (story continues below).
The supermarket also contributes to 52pc of the annual income – and as such, the centre’s short Weighted Average Lease Expiry (3.25 years).
There are 15 specialty stores too.
“This was a rare opportunity to secure a high performing neighbourhood shopping centre that provides a resilient revenue stream underpinned by non-discretionary spending,” Centuria joint chief executive officer, Jason Huljich, said.
“This acquisition is another example of Centuria securing high performing, quality retail assets within WA communities that will benefit from growing economies, driven by population growth,” he added.
“We continue to secure value-add opportunities to match specific profiles within our broad unlisted network and are pleased to provide a new investment vehicle to our high-net-worth investor base,” according to the executive.
James Douglas and Chloe Mason of CBRE with VPG Property’s Craig Butler and David Walser represented the Vukelic family.
“The Busselton transaction demonstrates that capital remains active for well located, strong performing retail assets focused on food, service and convenience where there is an opportunity to enhance the asset’s income profile,” Mr Douglas said.
“There was significant investor enquiry for both the Busselton and Margaret River centres from eastern seaboard and west coast capital, with over 120 enquiries fielded from a variety of investor types,” he added.
“This demand for resilient, defensive assets continues, with the transaction representing the fourth Western Australia neighbourhood shopping centre sale by CBRE in the past 12 months for a total of circa $205m” according to the executive.
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