Charter Hall Retail REIT has acquired a 50 per cent interest in Perth’s Wanneroo Central Shopping Centre.

The 50 per cent share of Wanneroo Centroo, which is located in the northern suburbs of Perth, will be bought for $70 million.

The sub-regional shopping centre is anchored by a Coles supermarket, IGA supermarket and a Kmart discount department store with these tenants contributing more than 45 per cent of the Centre’s total base rent. These anchors are complemented by 48 specialty retailers and the property is fully lease, with a total gross lettable area of over 16,300 square metres.

Anchor tenants are secured on long term leases with a weighted average anchor lease expiry of 16.3 years. The centre benefits from a strong representation of national specialty retailers with all specialty tenants secured with annual rent reviews averaging 4.5 per cent. The property also includes additional development land of 12,000 square metres, providing the opportunity to expand the centre.

As part of this acquisition, the co-owners are exploring various opportunities to improve the property’s supermarket offering, specialty mix and its competitive position in the catchment, thereby maximising income and capital growth prospects.

“With a robust forecast population growth of 4.7 per cent in its main trade area, dominant supermarket anchor tenants and the introduction of Sunday trading across Western Australia, Wanneroo Central is expected to contribute stable long term returns and will be a high quality addition to the REIT’s non-discretionary portfolio of shopping centres,” Scott Dundas, acting CEO, said.