Centuria buys WA shopping centre for $16m to launch new fund

SYDNEY, AUSTRALIA: Centuria Capital Group, an ASX-listed property investment firm, has acquired the Busselton Boulevard Shopping Centre in Western Australia for $16 million, which will form the basis of a new single-asset wholesale fund.

The Busselton Boulevard Shopping Centre Trust (BBSCT) will offer investors a forecast initial distribution yield of 7.50% per annum, monthly distributions and an initial five-year term. The minimum entry investment is $100,000.

The shopping centre, located on 69 Prince Street, Busselton, is a daily needs neighbourhood centre anchored by a Coles Supermarket and 15 convenience retailers. It has a weighted average lease expiry (WALE) of 3.25 years and an occupancy rate of 99%. Ninety-two per cent of the centre caters to food and non-discretionary spending.

Jason Huljich, Centuria Joint CEO, said the acquisition was a rare opportunity to secure a high-performing retail asset that provides a resilient revenue stream in a growing regional market.

“This acquisition is another example of Centuria securing high-performing, quality retail assets within WA communities that will benefit from growing economies, driven by population growth. We continue to secure value-add opportunities to match specific profiles within our broad unlisted investor network and are pleased to provide a new investment vehicle to our high net worth investor base,” he said.

The deal follows the success of Centuria’s Margaret River Shopping Centre Trust, which was established in January 2023 and was fully subscribed.

Centuria said it will seek to raise about $10.7 million to launch the BBSCT, with an anticipated launch date of July. Settlement is expected in late August 2023.

The acquisition adds to Centuria’s existing $1.7 billion daily needs retail platform.

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