Centuria has acquired the Busselton Boulevard Shopping Centre in Western Australia for $16 million, reflecting a 9.19% initial yield.
A local investor sold the 4,800 sqm neighbourhood shopping centre in Busselton, located more than 200km from Perth CBD.
Located on 69 Prince Street, the daily needs shopping centre was home to a Coles supermarket and 15 convenience retailers, ranging from a chemist, newsagents, fish mongers, butcher, bakery, medical centre and others.
The property was anchored by Coles, which occupied 3150 sqm of the property, and offered a 3.25-year WALE and 99% occupancy.
“This was a rare opportunity to secure a high performing neighbourhood shopping centre that provides a resilient revenue stream underpinned by non-discretionary spending,” Bruce McCully, Centuria Head of Retail, said.
“Furthermore, the beachside city of Busselton, which is supported by seasonal tourism as well as a growing population, is set to further benefit from State and Federal urban regeneration projects.”
The Government-backed projects included the Busselton Foreshore Redevelopment, a restoration of the Busselton Jetty, and upgrades to the Busselton Margaret River Airport and local roads.
This deal follows the recent acquisition of Margaret River Shopping Centre for a combined total of $31 million, with CBRE’s James Douglas and Chloe Mason negotiating both transactions with VPG Property’s Craig Butler and David Walser.
“There was significant investor enquiry for both the Busselton and Margaret River centres from eastern seaboard and west coast capital, with over 120 enquiries fielded from a variety of investor types,” Douglas said.
“This demand for resilient, defensive assets continues, with the transaction representing the fourth Western Australia neighbourhood shopping centre sale by CBRE in the past 12 months for a total of circa $205 million.”
“Investors were attracted by the centre’s defensive income stream which benefits from dual catchments including permanent residents as well as a burgeoning tourism influence,” Butler said.
These investments across WA added to Centuria’s $1.7 billion daily needs retail portfolio, including projects further north in the state.