Australian real estate funds manager, Centuria Capital Group has expanded its $3.2 billion retail assets under management with the $70 million acquisition of Halls Head Central in Western Australia.
Located 4km south-west of Mandurah and 67km south of the Perth CBD, the 19,373m2 food, service and convenience-based centre is securely anchored by Coles, ALDI and Kmart, representing, alongside two mini majors, 50 specialty shops and two freestanding pad sites.
CBRE’s Simon Rooney and James Douglas managed the off-market sale campaign on behalf of the vendors Vicinity Centres and ISPT.
“The transaction demonstrates continued demand, particularly by private capital for sub-regional assets with a focus on non-discretionary spending, particularly those which offer strategic value-add opportunities,” Rooney said.
“In the case of Halls Head, the asset’s location at the core of the Halls Head activity centre, significant capital investment works completed in 2016, together with future strategic value-add potential, were key investor draw cards.”
Rooney noted that the centre occupied a significant and under-utilised site of 93,136m2, including circa 10,000m2 of adjoining vacant land, providing the opportunity for future mixed-use, value-add development schemes subject to the relevant planning approvals given the current low 22% site coverage.
The centre, located along Old Coast Road, sits on nine hectares and its low site coverage of 22% provides potential development or land banking opportunities
The acquisition will underpin a single-asset, closed-ended wholesale fund managed by Centuria Capital Group.
Jason Huljich, Centuria Joint CEO, said, “Halls Head Central provides a compelling, counter-cyclical investment opportunity within WA’s second largest city, Mandurah. The centre benefits from a high proportion of non-discretionary retailers while presenting value-add opportunities through tenant remixing or potential redevelopment.”
Centuria’s acquisition adds to its existing WA retail platform, following other recent acquisitions including Busselton Boulevard Shopping Centre and Margaret River Shopping Centre.
Bruce McCully, Centuria Head of Retail, said, “Halls Head Central is now our third retail asset within the City of Mandurah. Centuria has deep market experience within the region, actively managing the Erskine Shopping Centre and Mandurah Greenfields Shopping Centre.
“With limited new supply of retail assets, due to construction supply pressures, coupled with a strong population growth, we believe tenant demand will continue to outstrip supply for well-maintained sub-regional shopping destinations across Western Australia.”
The acquisition will underpin a single-asset, closed-ended wholesale fund named Centuria Halls Head Central Fund
Halls Head generates an impressive annual total turnover of $137.4 million. Specialty performance of $10,703/m2 is 15% above the Urbis benchmark.
Western Australia continues to gain traction as a key retail investment destination, with total transaction levels reaching $923 million in 2023 to date.
Recent Western Australia transactions include Midland Gate for $465 million, Rockingham Shopping Centre for $180 million, Dianella Plaza for $76.25 million and Southlands Boulevard for $92.5 million.
