- Primewest, a Centuria Capital Group (CNI) subsidiary, has landed a $71.2 million shopping centre in Geraldton, Western Australia
- The aquisition is for a new single-asset, unlisted closed-ended wholesale fund which will be open to wholesale investors from Wednesday
- The centre has a 4.7-year weighted average lease expiry (WALE) and is 96.3 per cent occupied
- The Northgate Geraldton Trust (NGT) is looking to raise $41.8 million and will have a 7.25 per cent per annum dividend expected in the first two years
- Shares in CNI closed down 2.10 per cent to $3.26 each
Primewest, a Centuria Capital Group (CNI) subsidiary, has landed a $71.2 million shopping centre in Geraldton, Western Australia. The aquisition is for a new single-asset, unlisted closed-ended wholesale fund.
The Northgate Geraldton Shopping Centre, located at 110 Chapman Rd, Geraldton, is the area’s major shopping centre.
Coles and Kmart are the anchoring tenants that generate 49 per cent of the asset’s total rental revenue. Kmart has recently begun a new 10-year lease.
The centre has a 4.7-year weighted average lease expiry (WALE) and is 96.3 per cent occupied. It has the anchor tenants as well as discount store Red Dot, 28 specialty stores, four kiosks, a Hungry Jack’s and Concierge Car Wash pad sites.
Centuria joint CEO Jason Huljich said the acquisition presented a rare opportunity to secure a retail asset that was strategically located within WA’s fourth most populated area.
“It benefits from strong tenant covenants with 80 per cent of the property’s gross income derived from ASX-listed, national and multinational tenants,” he said.
“The acquisition illustrates how Centuria’s larger balance sheet can support the team’s expansion across large format and neighbourhood retail markets by securing quality, well performing assets. It adds to the group’s strong retail real estate portfolio, totalling more than $2.6 billion.”
The Northgate Geraldton Trust (NGT) will have a five-year term and will be available to wholesale investors on October 13, 2021, with a 7.25 per cent per annum dividend expected in the first two years. NGT intends to raise $41.8 million in equity.
Geraldton is located roughly 400 kilometres north of Perth’s CBD, in the heart of WA’s Mid-West area.
Shares in CNI closed down 2.10 per cent to $3.26 each.