Centuria secures $202m West Village retail precinct27 January 2022
Centuria Capital Group has secured an off-market, c.$202million Daily Needs Retail (DNR) precinct within Sekisui House’s $1.1billion masterplanned mixed-use development, West Village, Brisbane.
Centuria will co-invest in the trophy acquisitions alongside an existing international sovereign wealth fund’s institutional mandate. The acquisition encompasses 16,560sqm of modern retail facilities in addition to complementary hospitality, wellness and office accommodation throughout five distinct buildings.
West Village is a part of a long-term rejuvenation project within the fringe-city Brisbane suburb, West End, just one kilometre from the heart of the CBD. The asset is part of an award winning, Six-Star Green Star, masterplanned precinct focusing on the adaptive reuse of the heritage listed Peter’s Ice Cream Factories. The $1.1billion, 2.6-hectare site is located 1km to the Brisbane CBD and is framed by Mollison Street, Boundary Street and Wilson Street in West End. Upon completion it will provide up to 1,250 residences, half the site returned to open parkland and green laneways, a convenience retail centre, medical centre, office accommodation, and dining precinct. It incorporates eight residential buildings, a c.6,500sqm ‘Greenhouse’ office tower, 16,560sqm of retail/commercial, approximately 1,900 carparks and 6,500sqm of public open space. The precinct provides a 10.1-year Weighted Average Lease Expiry (WALE) and 100% occupancy.
Bruce McCully, Centuria Head of Retail, said “This was a rare, off-market opportunity to secure modern, high-quality retail real estate within such a landmark masterplanned community, that will cater to approximately 1,250 households within the West Village development in addition to the surrounding West End and South Brisbane residential community.
“Approximately, 89% of the portfolio’s income is 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. This creates a destination in the heart of an historic site that was once home to the Peters Ice Cream and Cone factories.
“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.”
The three-phased transaction includes existing landmark properties as well as assets to be constructed. Settlement of the various phases is expected between early 2022 and early 2023.
Phase One of the acquisition includes a Retail Mall, anchored by a full line Woolworths/BWS and flagship Harris Farm along with 19 specialty tenants and two kiosks, totalling 9,456sqm. This phase also incorporates ‘The Eaves,’ a three-level property with retail, cafés, restaurants and wellbeing spa called The Soakhouse as well as the former Peter’s Ice Cream factory, providing specialty retail, office accommodation and parking
Phase Two incorporates the retail and hospitality property ‘South Pavilion,’ which is anticipated to be completed in late 2022. Phase Three includes the refurbished former Peter’s cone factory, also providing retail and hospitality outlets.
Mr McCully continued, “The retail facilities within this masterplanned community are not only supported by the local residential community but will further benefit from the neighbouring six-storey office tower currently under construction.”
The West Village acquisition builds on Centuria’s existing $313.3million of quality retail assets within its existing DNR mandate for its international sovereign wealth fund partner.
Group CEO & Managing Director of Sekisui House Australia, Hide Seguchi, said: “West Village is an award-winning development and flagship project for Sekisui House Australia, underpinned by our core philosophy and ‘satoyama’ design principles, which places enormous importance on generous green spaces around each development. The unique precinct offers healthy, sustainable lifestyle and flexible working options with an array of common areas that celebrate and reinvigorate the heritage elements at the site such as the iconic Peter’s Ice Cream factory. We are extremely proud of the success of the thriving master-planned community which combines residential, retail and commercial uses in a stunningly designed, environmentally conscious urban village.
“Centuria has a proven track-record and focus on the ongoing management of quality, premium retail precincts with strong community outcomes around the country. We are delighted to be partnering with them along with their sovereign wealth fund partner to continue the West Village story.”