- The property is located at 132 Bussell Highway
- Is anchored by Coles and Liquorland
- Originally built in 2001 by Coles Property Developments
A shopping centre in Western Australia’s South West region has been acquired by Centuria Capital Group (ASX: CNI).
The 132 Bussell Highway property is located in the heart of Margaret River, and was acquired for $15 million, reflecting a 6.47% initial passing yield.
Margaret River Shopping Centre was constructed in 2001 by Coles Property Developments and has an over 50-metre frontage to the main street.
Anchored by Coles and Liquorland, the single-storey shopping centre was secured from a local vendor.
Some 81% of the shopping centre’s gross income is derived from the Coles Group, with Coles and Liquorland accounting for 2,713 square metres of the shopping centre; three specialty shops comprise 280 square metres and include a Brumby’s bakery, Bob’s Shoe Store and jeweller, Glitterati.
Margaret River Shopping Centre’s Coles supermarket tenancy has a Moving Annual Turnover (MAT) exceeding $14,500/sqm, 10.2% above the Urbis 2021 ‘Single Supermarket’ benchmark of $13,200/sqm.
The asset is 100% occupied, and provides a 2.8 year WALE, with the acquisition to underpin the Margaret River Shopping Centre Trust (MRSCT), a single-asset, closed-ended wholesale property fund, providing a forecast initial starting distribution yield of 5.75% per annum.
Jason Huljich, Centuria Joint CEO, said, “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. We are adopting a disciplined approach to our real estate transactions and are excited to offer this opportunity to our HNW investor base.”
Bruce McCully, Centuria Head of Retail added, “The Margaret River Shopping Centre adds to Centuria’s strong convenience, neighbourhood shopping retail platform. The daily needs retail sector throughout Australia continues to experience strong tailwinds, underpinned by non-discretionary spending, which makes it somewhat resilient to wider economic impacts.
“In particular, this shopping centre supports a burgeoning local community with the Australian Bureau of Statistics (ABS) showing the Margaret River region as having one of Australia’s fastest growing regional populations. The region benefitted from a robust 3.5% pa population growth between 2011 and 2021, significantly above Western Australia and Australia’s growth of 1.6% pa and 1.4% pa, respectively. These favourable metrics provide us with the confidence to execute a favourable value-add leasing strategy.”
CBRE’s James Douglas and Chloe Mason, and VPG Property’s, Craig Butler & David Walser represented the vendor.
