This article is from the Australian Property Journal archive
CENTURIA Capital Group and Singapore’s sovereign wealth fund GIC are spending $202 million to acquire a Brisbane city fringe retail precinct as investors continue to buy up convenience-based assets.
The off-market deal will see the partners purchase the commercial component of Sekisui House’s $1.1 billion master-planned mixed-use development West Village, in West End.
The three-phased transaction includes existing properties as well as assets to be constructed, totalling 16,650 sqm of retail and complementary hospitality, wellness and office space over five buildings.
The fully-leased precinct provides a 10.1-year weighted average lease expiry.
Nearly 90% of the portfolio’s income is underpinned by daily-needs and non-discretionary tenants and includes two anchor supermarkets, cafes, restaurants, bars, parklands and wellness facilities that provide a resilient and defensive income profile, according to Centuria head of retail Bruce McCully.
“This was a rare, off-market opportunity to secure modern, high-quality retail real estate within such a landmark master-planned community, that will cater to approximately 1,250 households within the West Village development in addition to the surrounding West End and South Brisbane residential community,” he said.
West Village is being constructed on a 2.6-hectare site once home to the Peters Ice Cream and Cone factories. Framed by Mollison Street, Boundary Street and Wilson Street, the six-Star Green Star precinct will adapt the heritage-listed factories with half the site returned to open parkland and green laneways, and also include a medical centre, office accommodation, and dining precinct. There will be eight residential buildings, a circa 6,500 sqm office tower that will be partly tenanted by architects Hassell, 1,900 car parks and 6,500 sqm of public open space.
Phase one of Centuria’s acquisition includes a retail mall, anchored by a full line Woolworths and BWS and flagship Harris Farm, along with 19 specialty tenants and two kiosks, totalling 9,456 sqm. This also incorporates a three-level property named The Eaves with retail, cafés, restaurants and wellbeing spa called The Soakhouse as well as the former Peter’s Ice Cream factory, providing specialty retail, office accommodation and parking.
Phase two incorporates the retail and hospitality property South Pavilion, expected to be completed in late 2022, and phase three includes the refurbished former Peter’s cone factory, also providing retail and hospitality outlets.
Settlement of the various phases is expected between early 2022 and early 2023.
“The West End area is experiencing somewhat of a renaissance, which will further benefit from improved connectivity once the proposed new green bridges are completed, linking the area with Toowong to the west and St Lucia to the south,” McCully said.
Centuria said the West Village acquisition builds on its existing $313.3 million of retail assets within its existing daily needs retail mandate for its international sovereign wealth fund partner.
Primewest, recently merged into Centura Capital Group, closed 21 with the $41.5 million purchase of an under-construction retail centre catering to daily needs and located within a new mixed-use complex in Sydney’s Hurstville.
Group CEO and managing director of Sekisui House Australia, Hide Seguchi, said the West Village precinct “offers healthy, sustainable lifestyle and flexible working options with an array of common areas that celebrate and reinvigorate the heritage elements at the site”.
JLL’s Sam Hatcher, Nick Willis and Jacob Swan introduced the transaction to Centuria.
