Margaret River Shopping Centre snapped up for $15m by investment fund

The central shopping centre hosting Coles Margaret River was snapped up for $15 million last week, just a couple of months after it went on the market. Stock exchange-listed Australasian real estate funds manager Centuria Capital Group bought the site in the town centre on behalf of members, noting the Coles-backed complex had above-average investment returns. Thanks to its star tenants, the Margaret River Shopping Centre returned above the annual 10 per cent benchmark and was tipped to increase thanks to the region’s strong population growth, fund managers said. Centuria co-chief executive Jason Huljich said the 2173sqm single-level supermarket saw 81 per cent of its income generated through its Coles lease, including the liquor store, while three additional speciality shops brought in the rest. “This acquisition exemplifies how we are executing our corporate strategy to secure value-add opportunities to match specific profiles within our broad unlisted investor network,” Mr Huljich said. “We are adopting a disciplined approach to our real estate transactions and are excited to offer this opportunity to our HNW investor base.” He also noted the site’s moving annual turnover was 10.2 per cent above the Urbis 2021 single supermarket benchmark. The Times understands minor works might be required on the complex, which was built in 2001. However, a Centuria spokeswoman said no redevelopment of the site’s footprint was expected. The site was offered for sale in November by the Vukelic family alongside the Boulevard Shopping Centre in Busselton. At the time, seller CBRE’s James Douglas said strong interest was expected during the expressions of interest period. “Both assets enjoy dual catchments and retail sale opportunities, with permanent residents as well as a burgeoning tourism influence,” he said. “Tightly held and rarely traded, it’s a unique opportunity to own part of WA’s most notable destinations.” When developed, the Margaret River site was subject to community protests around protection of native trees as well as a long-term lease offered for the carpark, which features 224 parking spots. The Times understands Coles Margaret River has a lease on the centre until 2026.