Centro pays $57m for Warnbro shopping centre

Melbourne-based Centro Properties Group has announced an agreement to acquire the Westpoint Corporation-linked Warnbro Fair Shopping Centre in Western Australia for $57 million, reflecting a valuation yield of 6.25 per cent.

Mr Andrew Scott, Centro Chief Executive Officer, said, "The successful acquisition of Warnbro Fair Shopping Centre is a pleasing achievement for Centro given the limited supply of quality retail property available for purchase in Australia. This acquisition continues to demonstrate Centro's successful track record in sourcing appropriate Australian shopping centres to further grow its managed funds."

Warnbro Fair is a single level sub-regional shopping centre located approximately 45 kilometres south of Perth, in the fast growing south western corridor of Western Australia.

The centre includes major supermarket retailers Woolworths and Coles as well as 40 specialty shops, two kiosks and four ATMs. The centre has a total gross lettable area of 11,379m2, and an adjoining parcel of commercially zoned vacant land of approximately 9,000m2. Car parking is provided for 561 vehicles.

Mr Graham Terry, Centro Chief Operating Officer, said, "Centro is very pleased to have acquired Warnbro Fair. The centre is anchored by strong performing Woolworths and Coles supermarkets and a strong array of specialty retailers. We are particularly pleased at the development potential and value adding opportunities for the centre that the adjoining land of 9,000m2 provides in the high population growth corridor south of Perth."

Warnbro Fair was acquired from Elderslie Finance Corporation Limited in its capacity as custodian of the Warnbro Fair Syndicate.

"Centro's team has worked under difficult circumstances to secure the Warnbro acquisition as the asset was connected to the Western Australian Westpoint Corporation. The property is being acquired by a Centro managed fund to meet the continuing ongoing investor demand for quality Australian retail property," added Mr Scott.

Settlement of the acquisition is expected to occur mid August 2007.