Vicinity sells Karratha centre for $96m

Vicinity and Challenger have entered an agreement to sell Karratha City Shopping Centre for $95.9 million to Melbourne syndicator Fawkner Property.

The 4.7-hectare single-level Karratha subregional centre is anchored by Kmart and one of the busiest Woolworths in the state.  

The Reject Shop, Karratha Furniture & Bedding, Retravision and Red Dot also occupy the centre, alongside 51 specialty stores and kiosks, an ATM and three pad sites.

Vicinity initially purchased the asset in 2013 for $49.55 million, with Challenger co-investing in the deal.

Fawkner Property is described as one of the nation’s leading essential services asset managers, with investments across retail, childcare and petrol stations.

CBRE pacific head of retail capital markets Simon Rooney negotiated the off-market sale campaign on behalf of the vendors.

A Vicinity spokesperson said the deal aligned with the company’s long-term strategy.

“The sale is another example of Vicinity executing its active investment program to recycle capital to fund developments and acquire premium, destination assets aligned with our long-term strategy,” the spokesperson said.

The transaction follows the recent sales of Collie Central Shopping Centre and Maddington Shopping Centre.

Realside have agreed to purchase the Maddington asset for $107 million, with the deal expected to settle on July 1.