- Centre underpins new single asset wholesale trust
- Fund to be called Busselton Boulevard Shopping Centre Trust
- The centre is anchored by Coles, with 92% catering to food and non-discretionary spending
A circa 4,800 square metre Busselton shopping centre has been acquired by Centuria Capital Group (ASX: CNI) for $16 million, which will underpin a new single asset, closed ended wholesale property fund.
Located at 69 Prince Street in Busselton, the single-storey shopping centre was acquired from a local vendor with the sale price reflecting a 9.19% initial yield and a forecast internal rate of return exceeding 13%.
The daily needs neighbourhood shopping centre is anchored by a circa 3,150 sqm Coles Supermarket and provides a 3.25-year WALE and 99% occupancy. The centre also includes a further 15 convenience retailers including a chemist, newsagent, fish monger, butcher, bakery, medical centre, ATM and specialty shops; ninety-two per cent of the centre caters to food and non-discretionary spending.
“This was a rare opportunity to secure a high performing neighbourhood shopping centre that provides a resilient revenue stream underpinned by non-discretionary spending,” said Centuria Joint CEO, Jason Huljich.
“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.
“We continue to secure value-add opportunities to match specific profiles within our broad unlisted investor network and are pleased to provide a new investment vehicle to our HNW investor base.”
The property is also well located, Centuria head of retail, Bruce McCully said, “The asset further benefits from its excellent location, within the heart of the Busselton community, surrounded by an adjacent on-grade car park, holiday accommodation, civic and community infrastructure and is less than a kilometre from the iconic Busselton Jetty.”
“Furthermore, the beachside city of Busselton, which is supported by seasonal tourism as well as a growing population, is set to further benefit from State and Federal urban regeneration projects.”
The Busselton Boulevard Shopping Centre follows the success of Centuria’s Margaret River Shopping Centre Trust, which was established in January 2023 and was fully subscribed.
The 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, said CBRE‘s James Douglas.
“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. 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 $205 million.”
VPG Property‘s Craig Butler added, “Investors were attracted by the centre’s defensive income stream which benefits from dual catchments including permanent residents as well as a burgeoning tourism influence.”
