ASX-listed shopping centre owner Federation Centres has picked up Currambine Shopping Centre for $74 million, the second major retail transaction in Perth this week.
The shopping centres giant will also provide $20 million to fund the expansion of the centre, which is in the early stages of construction.
The centre is currently anchor-tenanted by a Woolworths supermarket, a Dan Murphy's liquor outlet and 44 speciality stores.
Once complete by midway through next year, Currambine Shopping Centre will include a Farmer Jack’s supermarket, six new specialty stores and an expanded Grand Cinemas.
Federation Centres that the deal and expansion would provide a yield of 7 per cent.
“The acquisition of Currambine Central, which was sourced off-market, forms part of a broader program to strategically realign the portfolio to continue to deliver sustainable returns to our investors,” Federation managing director Steven Sewell said.
“This latest addition to the portfolio was recently ranked in the top five centres nationally by sales productivity.”
Federation Centres bought the property from its incumbent owner White and Partners, the investment arm of the Ray White Group.
White and Partners general manager George Ajaka said the deal would allow for the delivery of the next stage of the centre’s redevelopment.
The centre was bought by White and Partners in January 2008 for $52.5 million.
"When we first purchased the centre, it had around 8,000 square metres of net lettable area," Mr Ajaka said.
"Since then we have added on Dan Murphy's, significantly expanded the facade and increased the area to nearly double its size."
The sale follows the sale of Fremantle’s Woolstores Shopping Centre, which Business News reported late yesterday
The Woolstores centre was bought by an unnamed private investor for $40 million, in a deal brokered by commercial agency JLL.