Halls Head Central shopping centre has been sold for $70 million.
Centuria Capital Group purchased the centre from retail giants Vicinity and ISPT.
They will become the new managers of the 19,373 sqm2 sub-regional shopping centre, their third in Mandurah.
Halls Head Central sits on nine hectares and with the shopping centre covering just 22 per cent, there is potential for further development on 10,000sqm of surplus land.
Centuria joint CEO Jason Huljich said the centre was secured at 40 per cent below its independently assessed replacement cost.
“Hall Head Central provides a compelling, counter-cyclical investment opportunity within WA’s second largest city, Mandurah,” Mr Huljich said.
“The centre benefits from a high proportion of non-discretionary retailers while presenting value-add opportunities through tenant remixing or potential redevelopment.”
Halls Head Central features two supermarkets, Coles and ALDI, as well as Kmart, two mini-majors, 50 specialty shops and two freestanding pad sites.
According to Centuria, it attracts 2.4 million customers per year.
Centuria Head of Retail Bruce McCully said the newest purchase is their third in Mandurah.
“Halls Head Central is now our third retail asset within the City of Mandurah. Centuria has deep market experience within the region, actively managing the Erskine Shopping Centre and Mandurah Greenfields Shopping Centre,” Mr McCully said.
“With limited new supply of retail assets, due to construction supply pressures, coupled with a strong population growth, we believe tenant demand will continue to outstrip supply for well-maintained sub-regional shopping destinations across Western Australia.”
Settlement is expected in July 2024.