This article is from the Australian Property Journal archive
INVESTOR and fund manager IP Generation has made another major shopping centre purchase, acquiring a 50% stake in Western Australia’s Rockingham Centre for $180 million.
Sitting 47km out from Perth, Rockingham Centre boasts a gross lettable area of 62,204sqm with future development potential for an adjoining 42,617sqm of vacant land, subject to council approval.
The centre is the Rockingham area’s dominant food, service and convenience-based centre and is anchored by Coles and Woolworths supermarkets, Ace Cinemas and discount department stores Kmart and Target.
Simon Rooney from CBRE managed the off-market sale, struck on a core capitalisation rate of circa 7.00%, on behalf of the AMP Capital Shopping Centre Fund.
“The Rockingham transaction demonstrates the renewed demand for quality, sub-regional and regional assets with a focus on non-discretionary spending. There is particularly strong interest in assets which offer strategic value-add opportunities,” said Rooney, head of retail markets at CBRE, Pacific.
The adjoining vacant land is identified as a “Strategic Metropolitan Centre”, providing planning support for future expansion and development.
It is one of just nine “Strategic Metropolitan Centres”, as identified by the Western Australian Government, representing long term development opportunities.
The acquisition represents the largest joint venture 50% sale of a regional shopping centre since the $215 million early-2022 disposal of Invesco’s share in the Grand Plaza Shopping Centre in Browns Plains, QLD. Which was also brokered by CBRE.
For IP Generation, the purchase follows the $185 million acquisition Westfield Helensvale in South East Queensland from QIC in late 2021.
While last week an AMP Capital managed fund listed another 50% interest in dominant major regional shopping centre, Stockland Townsville.
