Centuria Capital Group acquires WA Retail Centre for $70M

Centuria Capital Group has expanded its retail portfolio with the acquisition of Halls Head Central, a sub-regional shopping centre in Western Australia, for approximately $70 million.

This latest addition brings Centuria’s retail assets under management to a substantial $3.2 billion.

GALLERY  

Located in Mandurah, 75 kilometres south of Perth, Halls Head Central spans 19,373 square meters and is anchored by prominent retailers Coles, ALDI, and Kmart. The centre also features two mini-majors, 50 specialty shops, two freestanding pad sites, and on-grade parking for 960 vehicles. Its amenities include an enclosed air-conditioned mall, Wi-Fi, modern toilet and parenting facilities, a children’s playground, and an alfresco dining precinct.

With 64 percent of its gross income derived from non-discretionary tenants, Halls Head Central attracts 2.4 million customer visits annually. The asset boasts a weighted average lease expiry (WALE) of 3.3 years and is currently at 100 percent occupancy.

The strategic location of Halls Head Central on Old Coast Road, the central arterial roadway connecting regional hubs Rockingham and Bunbury, enhances its accessibility and appeal. The centre occupies 22 percent of its 9-hectare site, providing potential for future development or land-banking opportunities on approximately 10,000 square meters of surplus land.

Centuria highlights that the acquisition of this counter-cyclical retail asset was secured at about 40 percent below its independently assessed replacement cost. Joint Chief Executive Jason Huljich emphasized the strategic value of the investment, stating, “Halls Head Central provides a compelling, counter-cyclical investment opportunity within WA’s second largest city. WA remains a standout state for retail property. Greater Perth’s population has increased by 3.6 percent over the past 12 months, and when coupled with low forecast retail supply and vacancy, it provides compelling fundamentals for the retail sector.”

Bruce McCully, Centuria’s Head of Retail, noted the group’s existing presence in Mandurah with the Erskine Shopping Centre and Mandurah Greenfields Shopping Centre. “Centuria has deep market experience within the region. With limited new supply of retail assets due to construction supply pressures and strong population growth, we believe tenant demand will continue to outstrip supply for well-maintained sub-regional shopping destinations across Western Australia,” McCully added.

The acquisition of Halls Head Central marks Centuria’s continued confidence in the WA retail market, underscoring its strategy to capitalise on growth opportunities and solidify its market position in the region.

Images via The Urban Developer

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