(Perth is set to become Scotland's seventh city. It was the country's first capital but its city status was removed in 1975 as part of a local government shake-up. Dr John Hulbert, provost of Perth and Kinross Council, said: "I am delighted that official city status has been restored to Perth. Everyone in the council shares my excitement at the prospect of a glorious new chapter in Perth's long history. "Even although city status was summarily removed when local government was reorganised, Perth has continued to be known as the 'Fair City'. Full restoration of its ancient dignity is long overdue." Perth and North Perthshire SNP MP Pete Wishart called the city status bid a 'brilliant campaign'.)
Charter Hall Retail REIT (ASX:CQR) (the 'REIT') has announced that it is in the tail-end of acquiring Wanneroo Central Shopping Centre in Perth, Western Australia for $70 million.
Wanneroo Central, located in Perth's northern suburbs, will be acquired for $70 million at an initial yield of 8.0% andis expected to settle by the end of April 2012. 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% of the Centre's total base rent. These anchors are complemented by 48 specialty retailers and the property is fully leased, 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%. The property also includes additional development land of 12,000 square metres, providing the opportunity to expand the centre.
The REIT's 50% share of acquisition costs will initially be funded from undrawn debt capacity with the acquisition expected to be immediately accretive to earnings. 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.
Acting Chief Executive Officer, Scott Dundas, said: "With a robust forecast population growth of 4.7% 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.
Including rent guarantee over one retail vacancy of 71 square metres
SOURCE IBTimes
