Centuria Capital has bought a subregional shopping centre in Western Australia for A$70m (€43m) from ISPT and Vicinity Centres.

The transaction was done at 40% discount to the Halls Head Central mall’s value at the peak of the market last decade.

Centuria has launched a wholesale, single-asset trust, Centuria Halls Head Central Fund, to hold the asset and has targeted equity raise of A$41m. The trust will have an initial five-year term.

Halls Head Central sits on nine hectares and its low site coverage of 22% provides potential development or land banking opportunities across 10,000sqm metres of surplus land. 

Jason Huljich, Centuria Joint CEO, said: “The centre benefits from a high proportion of non-discretionary retailers while presenting value-add opportunities through tenant remixing or potential redevelopment.”

Huljich said the centre provided a compelling, counter-cyclical investment opportunity within WA’s second largest city, Mandurah. It is Centuria’s third shopping centre in Mandurah.

Bruce McCully, Centuria head of retail, 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 subregional shopping destinations across Western Australia.” 

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