5th March 2015.
Perth-based private equity firm Sirona Capital has bought a shopping centre in Margaret River from SCA Property Group for $18 million.
The deal gives Sirona, which also Owns the Woolworths anchored Adelaide Street Plaza in Fremantle, the mall on a passing yield of 9.3 per cent.
SCA said at last month's results announcement it had entered into a conditional agreement to sell the 5730-square-metre mall, which was only completed in July 2013.
As of the end of December, the mall had the lowest occupancy rate of all of SCA's centres, with 79 per cent of its gross lettable area leased. It had a weighted average lease to expiry (WALE) of 13.1 years.
But Sirona managing director Kelvin Flynn said his interest in the centre was strategic. "The centre is the only integrated full-line supermarket with undercroft parking in the Margaret River region," he told The Australian Financial Review.
He declined to comment on the terms of the deal.
The wine-growing region was likely to benefit from stronger domestic tourism as a result of the weaker Australian dollar and this would benefit the mall, Mr Flynn said.
Sirona, which owns assets in retail, natural resources and agriculture through seven funds, has in excess of $100 million funds under management, he said.
The private equity firm is looking for more retail assets.
Anchor tenant Woolworths occupies 3800sqm of the centre on the corner of Town View Terrace and Willmott Avenue in Margaret River's CBD. Woolworths has a 20-year tenancy.