IP Generation finalises latest major shopping centre acquisition in WA

IP Generation has acquired a 50% stake in Western Australia’s Rockingham Centre for $180.0m in its latest major shopping centre purchase.

Struck on a core capitalisation rate of circa 7.00%, the Rockingham transaction follows IP Generation’s $185.0m acquisition from QIC of Westfield Helensvale in South East Queensland in late 2021.

CBRE’s Simon Rooney negotiated the off-market sale of the Rockingham Centre on behalf of the AMP Capital Shopping Centre Fund.

It is the largest joint venture, 50% sale of a regional shopping centre since the $215m disposal of a half share in Queensland’s Grand Plaza Shopping Centre in Browns Plains, which CBRE sold to EG Funds on behalf of Invesco in early 2022.

More recent transactions include Telstra Super’s 50% stake in Carlingford Court, which was sold by CBRE to the JY Group for $120.5m in mid-2022.

Simon Rooney, CBRE’s Head of Retail Capital Markets – Pacific, noted, “The Rockingham transaction demonstrates the renewed demand for quality, sub-regional and regional assets with a focus on non-discretionary spending. There is particularly strong interest in assets which offer strategic value-add opportunities.”

Rockingham Centre is the area’s dominant food, service and convenience-based centre. It has a gross lettable area of 62,204 sqm and is securely anchored by strong performing Coles and Woolworths supermarkets, Kmart and Target discount department stores and Ace Cinemas.

There is future development potential for an adjoining 42,617 sqm of vacant land (subject to council approval) with the property identified as a ‘Strategic Metropolitan Centre’, providing planning support for future expansion and development.

Situated within a key growth corridor, it is identified as one of only nine ‘Strategic Metropolitan Centres’ by the Western Australian Government, outranked only by the Perth CBD from a planning context – indicating long term development opportunities.