Fund manager bags Margaret River Coles
The Vukelic family has sold one of two Western Australian malls listed last October.
The Margaret River Shopping Centre – with a Coles, three specialty stores and 224 car parks – is trading to Centuria, which will hold it in a single asset fund now seeking investors.
At $15 million, the result reflects a 6.47 per cent net passing yield.
It is also at the lower end of the ($15-$20m) guide.
The vendor, via Vukelic Group, paid $11m in December, 2010.
The centre was developed by Coles Myer, which outlaid $5.95m for the 4622 square metre site, 132 Bussell Highway, in 2001.
Margaret River is 270 kilometres south of the Perth CBD.
Elsewhere in the area, last year, Melbourne developer Goldfields snapped up a 47.1ha low density residential development site, for $8m.
Saracen Properties and Security Capital Australia, meanwhile, are planning a resort to be occupied by Marriott as a Westin, at Gnararup Beach.
Margaret River Shopping Centre Trust
With a gross floor area of 2994 sqm – 82pc (2453 sqm) which is lettable – Margaret River Shopping Centre has a short 2.8 year Weighted Average Lease Expiry.
Centuria is expected to renovate – and attempt to renew Coles beyond its lease expiry in 2026.
The property will be held by the Margaret River Shopping Centre Trust, set to run 10 years from settlement, in March (story continues below).
The manager is seeking to raise $9.15m; the minimum investment is $250,000.
It is forecasting an initial distribution of 5.75pc per annum, paid monthly.
“This acquisition exemplifies how we are executing our corporate strategy to secure value-add opportunities to match specific profiles within our broad unlisted investor network,” Centuria joint chief executive officer, Jason Huljich, said.
“We are adopting a disciplined approach to our real estate transactions and are excited to offer this opportunity to our high net worth investor base,” according to the executive.
Ben McCully, Centuria head of retail, added the location is burgeoning.
“The region benefited from a robust 3.5pc pa population growth between 2011 and 2021, significantly above the Western Australia and Australia’s growth of 1.6pc and 1.4pc respectively,” he said.
The Coles is also trading at 10pc over the national supermarket benchmark.
“These favourable metrics provide us with the confidence to execute a favourable value-add leasing strategy,” according to Mr McCully.
CBRE’s James Douglas and Chloe Mason with VPG Property’s Craig Butler and David Walser represented the Vukelic family.
The vendor also last October listed the Busselton Shopping Centre – about 50 kms north of Margaret River – with $20m-plus price hopes.
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