Australian Unity’s Diversified Property Fund is moving to sell the recently redeveloped and expanded Busselton Central in Western Australia amid heightened investor activity in the state.
Circa $1.5 billion in WA retail transactions have been completed in WA since 2022, with the sale of Busselton Central providing an opportunity to acquire a recently redeveloped convenience-based shopping centre anchored by a strong performing Coles supermarket and a state-of-the-art, five-screen Reading Cinemas complex, both on long term leases.
Stonebridge’s Phil Gartland and Justin Dowers and CBRE’s James Douglas have been appointed to steer the Expressions of Interest process, which is expected to generate significant interest from a range of private, syndicate and institutional investors.
The 13,295m2 neighbourhood centre underwent a $45 million redevelopment in 2023 and is the focal retail asset within a large and growing trade area.
In addition to Reading Cinemas and Coles, which is forecast to pay percentage rent in the short term, the centre includes four mini-major tenants and 31 speciality tenants. It offers a highly secure tenancy profile, with the major tenants secured to 2033. The WALE (by GLA) is 7.4 years and there is strong tax depreciation potential for an incoming investor.
CBRE’s James Douglas said “Busselton Central provides a rare opportunity to acquire a near new, dominant and strong performing centre, which is set to enjoy real sales and income growth courtesy of its rapidly growing trade area and superior offering,”
“The investment provides opportunities to enhance the centre’s income through Coles’ performance and the specialty tenant profile, as well as offering a high degree of expense protection,” Douglas added.
Expressions of Interest closes Wednesday, 24 July 2024
Busselton is 230km south-west of Perth and 52km south of Bunbury and is a well-established growing region and a popular tourist destination for Perth residents, as well as interstate and international visitors. Busselton serves as the gateway to the internationally renowned Margaret River and is the largest population centre in the region.
It serves a total trade area of some 66,276 people, which is forecast to grow rapidly, at close to three times the Western Australian average over the next seven years. Retail sales in the trade area are forecast to reach $2.58 billion by 2041, reflecting strong average annual growth of 4.2%.
Stonebridge’s Phil Gartland said: “Busselton Central is an exceptionally well-presented centre following the major capital investment in the asset. The centre features a highly convenient design, excellent on-grade parking and with destinational retailers which are a major draw card for both local resident and tourist shoppers. The centre also occupies a land rich site of over 30,000m2 in the heart of the town centre and there are angles for intensification and value add.”
Justin Dowers noted, “Busselton Central offers many tenants that are not available anywhere nearby cementing it as an essential offering in the region which is seeing substantial infrastructure and population growth. The continued growth in tourism is a major driver for the town, especially with the Airport expanding its capabilities and offering flights from Melbourne and Sydney.”
