Sirona Capital has added the Margaret River Shopping Centre to its retail portfolio, buying the centre via syndicate for an undisclosed sum.
The funds manager and developer established an investment fund in November last year to purchase the 5,730 square metre centre, which is located on the corner of Town View Terrace and Willmott Avenue.
Woolworths has a 20-year tenancy at the centre, which also houses a BWS Liquor outlet and 16 specialty retailers.
Sirona Capital bought the property from Woolworths subsidiary SCA Property Group, with the deal representing an initial yield of 9.3 per cent.
Managing director Matthew McNeilly said Sirona was drawn to the property by its strong fundamentals, including a large catchment area and buoyant retail trade growth forecasts.
“Our research told us that this was a primary catchment area with retail trade growth potential and our investors have clearly seen the opportunity this strategic investment holds, with the fund now fully allocated,” he said.
“And we particularly like the local economic drivers including expected increased investment in the agriculture sector and tourism numbers likely to swell due to a weaker Australian dollar.”
Mr McNeilly said Sirona would implement a new leasing strategy at the centre to ensure investors were provided with the highest possible returns.
“It delivers Sirona with a strong strategic market position as the owner of the only integrated supermarket and specialties centre in the Margaret River township, incorporating all-weather undercover parking, and which provides a superior retail experience for visitors and residents in Western Australia’s world-renowned tourism centre,” he said.
While the sale price was not disclosed, SCA said in its half-year results presentation earlier this month that the centre, which is 80 per cent leased, had a book value of $18 million.
Margaret River Shopping Centre was built in 2013.