Hurstville-primewest
Hurstville’s retail centre. Image – Primewest
  • Secured from Fridcorp for $41.5 million
  • Adding to Centuria Capital Group's $151 million worth of retail transactions across Australia since early Sewp 2021
  • Acquisition is currently under construction

A subsidiary of Centuria Capital Group, Primewest, has secured an off-market mixed-use complex from Fridcorp for $41.5 million.

Primewest head of retail Bruce McCully said, “We are strategically targeting retail investment properties that are underpinned by resilient tenant covenants.

“This includes daily needs centres that cater to non-discretional spending, gateway centres with a captive audience, and high-performing specialised assets.”

This will add to the Group’s $151 million worth of retail transactions across Australia since early September 2021.

Mr McCully said, “Primewest has recently acquired several high-qualty retail properties that cater to a broad suite of investors, ranging from institutional investors to retail and wholesale investors.

“We will continue to expand our retail platform and believe, as vaccination rates increase across the nation and lockdown restrictions lift, retail spending will be more top of mind with consumers, especially in the lead-up to the festive season.”

Bruce McCully, Primewest head of retail

The Woolworths-anchored 4,240sqm retail centre, located in Hurstville, Sydney New South Wales, was secured on a 4.77% passing yield.

Other stores include seven specialty outlets such as a BWS liquor store.

The residential component of the development will still be owned by Fridcorp.

Acquisition is currently under construction, yet upon completion (due Q1 2022) the centre will be fully leased, providing a 13.3-year Weighted Average Lease Expiry (WALE).

The location lies within the $700 million residential-led mixed-use development, Beyond Hurstville, which will include more than 550 apartments.

A Fridcorp spokesperson said the retail centre is crucial to the ground floor activation for the towers’ residents and is in line with the vision to bring together accomplished operators with a diverse offering not seen before in the area.

Fridcorp did not initially intend to divest of the asset, but strong market conditions with compressing cap-rates made the decision to sell compelling.

Stonebridge Property Group exclusively sold the Hurstville property.

Primewest

Recently, Primewest also acquired:

  • Northgate Shopping Centre, Geraldton WA, for $71.2 million
  • The Woolworths-anchored daily needs retail precinct within Potts Point’s OMNIA mixed-use development, for $14.3 million
  • The Coles-anchored $33.75 million Byford Village Shopping Centre in WA
  • $31.8 million Toyota dealership in Chatswood, NSW.
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