Elanor, Vicinity divest Pilbara mall

Karratha City has a 2.3 megawatt rooftop solar system.

A triple anchored shopping centre in Western Australia’s Pilbara has sold to Melbourne fund manager Fawkner Property for a touch above book value.

Karratha City, 20 kilometres south east of Dampier, a major industrial port, collected $95.9 million for Elanor Investors Group, which acquired its half stake with its takeover last year of Challenger’s Australian real estate platform, and Vicinity Centres, which owned the balance.

Developed in 1986 and renovated three years ago with a solar power system, it services a trade area of about 22,000 – predominantly associated with the mining sector – with an average age of 32 and annual household income of $168,650.

With 22,990 square metres, occupancy is a high 99 per cent.

CBRE’s Simon Rooney was the agent; the result was against a $95.1m valuation last June which assumed a 7.75pc capitalisation rate.

Karratha City

Coles, Kmart and Woolworths anchor Karratha City.

Also with four mini-majors, some 45 specialty tenancies and three pad sites, one occupied by a KFC restaurant said to be amongst the best performing in the state, the weighted average lease expiry by area is 3.7 years.

The circa five hectare block contains 1275 car parks too (story continues below).

Vicinity is speculated to be buying a stake in Joondalup Central.

The deal comes three weeks since we reported Vicinity sold Maddington Central in Perth’s north east to Sydney based Realside for $105m.

In May meanwhile the fund manager divested its 50pc stake in Mandurah’s Halls Head Central.

Centuria was that buyer, snaring the entire asset (the balance was owned by the ISPT managed Core Fund).

Last year, in Perth, Vicinity divested Dianella Plaza and Midland Gate – the latter for a speculated $465m including management rights.

It also recently listed the city’s Victoria Park Shopping Centre – the smallest mall on its book by value – with c$30m-plus price hopes.

Vicinity has bought properties too – including last month, a half interest in Lakeside Joondalup for $420m – a discount to the June, 2023, book value ($450m).

It is also planning several centre redevelopments including at its landmark Box Hill Central, in Melbourne’s east.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.