There’s more movement in WA’s retail sector with a recently redeveloped and expanded centre now on the block.
Australian Unity’s Diversified Property Fund is selling Busselton Central amid heightened investor activity in the state.
About $1.5 billion in retail transactions had been completed in WA since 2022, CBRE, who are managing the sale with Stonebridge, said.
The 13,295sq m neighbourhood centre underwent a $45-million redevelopment in 2023 and is the focal retail asset within a large and growing trade area.
The centre is anchored by a Coles supermarket and a state-of-the-art, five-screen Reading Cinemas complex, both on long-term leases, as well as four mini-major tenants and 31 speciality tenants.
Stonebridge’s Phil Gartland and Justin Dowers, and CBRE’s James Douglas have been appointed to steer the expressions-of-interest process for the asset.
Douglas said Busselton Central offered a highly secure tenancy profile, with the major tenants signed to 2033.
The WALE (by GLA) is 7.4 years and there is strong tax depreciation potential for an incoming investor.
Stonebridge’s Gartland said the centre featured a “highly convenient design, on-grade parking and with destination retailers who are a major drawcard for resident and tourist shoppers”.
“The centre also occupies a land rich site of over 30,000sq m in the heart of the town centre and there are angles for intensification and value add,” Gartland said.
Busselton is 230km south-west of Perth and 52km south of Bunbury. It is a well-established and growing region as well as a popular tourist destination for Perth residents, and interstate and international visitors.
The town serves as the gateway to the Margaret River region and is the largest population centre in the region.
The centre served a total trade area of about 66,276 people, which was forecast to grow rapidly at close to three times the Western Australian average over the next seven years, CBRE said.
“Retail sales in the trade area are forecast to reach $2.58 billion by 2041, reflecting strong average annual growth of 4.2 per cent,” CBRE said.
Dowers said Busselton Central offered many tenants not available anywhere nearby “cementing it as an essential offering in the region which is seeing substantial infrastructure and population growth”.
“The continued growth in tourism is a major driver for the town, especially with the airport expanding its capabilities and offering flights from Melbourne and Sydney.”
Expressions of interest are due to close Wednesday, July 24.
