Centuria Capital Group has acquired a $202 million retail precinct within a major mixed-use development in Brisbane’s West End.
The purchase comprised 16,560 sqm of retail facilities, as well as hospitality, wellness and office space across five distinct buildings.
The fully occupied precinct provides a 10.1-year weighted average lease expiry (WALE).
The precinct is part of Sekisui House’s $1.1 billion West Village mixed-use development project, which will provide up to 1,250 homes located about 1km from the Brisbane CBD.
The investment manager will co-invest in the asset with an existing international sovereign wealth fund’s institutional mandate which targets daily needs or convenience retail, building on its $313.3 million worth of acquisitions to date.
Centuria Head of Retail Bruce McCully said about 89% of the portfolio’s income was underpinned by daily needs and non-discretionary tenants, providing a resilient and defensive income profile.
“The acquisition includes two anchor supermarkets, which are complemented by cafes, restaurants, bars, parklands and wellness facilities,” said McCully.
“The West End area is experiencing somewhat of a renaissance, which will further benefit from improved connectivity once the proposed new green bridges are completed, linking the area with Toowong to the west and St Lucia to the south.”
Centuria will acquire the precinct through a three-phased transaction including the existing properties and the assets to be built.
The first phase includes a 9,456 sqm retail mall anchored by Woolworths and Harris Farm, followed by the ‘South Pavilion’ retail and hospitality property in the second phase.
The third phase will include the refurbished former Peter’s cone factory, which will provide additional retail and hospitality outlets.
JLL’s Sam Hatcher, Nick Willis and Jacob Swan introduced the transaction to Centuria.
The convenience retail deal comes after Centuria subsidiary Primewest bought a Woolworths-anchored retail centre under construction in Sydney from Fridcorp for $41.5 million last month.
SCA Property Group and GIC also teamed up last month to create a $750 million joint venture to invest in Australian metropolitan convenience retail centres, while Charter Hall Retail REIT acquired a 49% stake in a portfolio of 20 Ampol fuel and convenience retail centres for $50.5 million.
Other retail deals include Stockland and AMP Capital’s exit from the Coles Kmart Plaza Townsville shopping centre in Townsville, Queensland to a Sydney-based investor syndicate for $47.25 million.
In December, AMP Capital took over the Macquarie Centre in New South Wales, while partnering with UniSuper and Cbus Property to take control of Pacific Fair in Queensland in deals totalling $758.9 million.