Centuria Capital Group subsidiary, Primewest, has secured a $71.2 million shopping centre in Geraldton, a major gateway town in Western Australia, for a single-asset, unlisted closed-ended wholesale fund.
The Northgate Geraldton Shopping Centre, located at 110 Chapman Rd, Geraldton WA, is the dominant shopping centre in the area, which has the fourth largest population in Western Australia. The retail asset is secured by anchor tenants, Coles and Kmart, which contribute 49% of gross rental income from the asset. Kmart recently commenced a new 10-year lease.
Including the anchor tenants, discount store Red Dot, 28 specialty shops, four kiosks, a Hungry Jacks and Concierge Car Wash pad sites, the centre provides a 4.7-year Weighted Average Lease Expiry (WALE).
The Northgate Geraldton Trust will be open to wholesale investors from 13 October 2021. It will have an initial five-year term, providing a forecast 7.25%pa distribution within the first two years. NGT has a target equity raise of $41.8million.
Bruce McCully, Primewest Head of Retail, said, “This is a rare opportunity to secure a retail asset that’s strategically located within one of WA’s most populated areas. It benefits from strong tenant covenants with 80% of the property’s gross income derived from ASX-listed, national and multinational tenants.
“Northgate Shopping Centre is the dominant retail precinct within Greater Geraldton, servicing a catchment of c.51,000 people across a 385km area, which provides a strong competitive advantage. Adding to this is the centre providing the only Coles and Kmart outlets within the area.
“The acquisition adds to Primewest’s strong retail real estate portfolio, totalling more than $2.6billion across daily needs and large format centres. Primewest has been a significant investor in high-quality retail assets that provide compelling returns for our broad network of wholesale and retail investors.”
The shopping centre comprises an enclosed, single level retail complex comprises 15,758sqm gross lettable area (GLA) within a 36,845sqm site. It is accessible via four street frontages, namely, Chapman Road, Bayly Street, George Road and View Street and provides 522 on-grade car parks.
Geraldton has a favourable retail environment due to its diverse economy and employment opportunities, stable and growing population, and affordable housing.
The City of Geraldton is approximately 400km north of Perth’s CBD, strategically located in the heart of WA’s Mid-West region. The town benefits from a diverse economy supported by mining, broad-acre agriculture, wild and aquaculture fishing, tourism, and transport and logistics industries.