Centuria snaps $16m WA shopping centre

The acquisition of the shopping centre in Busselton, WA, for $16 million will underpin Centuria’s new single-asset, closed-ended wholesale property fund, the Busselton Boulevard Shopping Centre Trust (BBSCT).

The group’s joint chief executive, Jason Huljich, said in the announcement to the Australian Securities Exchange (ASX) the move, which will add to Centruria’s existing $1.7 billion daily needs retail platform,  was in line with ‘specific profiles’ within its unlisted investor network and provided a new investment to its high net worth investor base.

BBSCT, which has a minimum entry investment of $100,000, will offer a forecast initial starting distribution yield of 7.50% per annum, monthly distributions and an initial five-year term.

Centuria will seek to raise around $10.7 million to launch the trust with an anticipated date of July and the settlement expected in late August.

The acquisition followed the firm’s Margaret River Shopping Centre Trust, which was established earlier this year and was fully subscribed.

The single-storey neighbourhood Busselton Boulevard Shopping Centre is anchored by a Coles Supermarket and provided a 3.25-year WALE (Weighted Average Lease Expiry), as of 1 June, 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,” Huljich said.

“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.”