Vicinity and Challenger have entered into an agreement with Fawkner Property to sell Karratha City shopping centre located in the Pilbara region of Western Australia.

A Vicinity spokesperson said, “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.”

This approach underscores Vicinity’s focus on maintaining a dynamic and profitable investment portfolio.

Fawkner Property, one of Australia’s leading essential services asset managers, has significantly expanded its retail platform with this acquisition worth $95.9 million.

Known for managing a diverse range of assets, Fawkner now oversees nearly $3.5 billion in real estate assets across convenience, childcare, and retail sectors. This acquisition of Karratha City is a notable addition to their portfolio, following their acquisition of Midland Gate in August 2023, in collaboration with PAG.

CBRE’s Pacific Head of Retail Capital Markets, Simon Rooney, negotiated the off-market sale campaign on behalf of the vendors, Vicinity Centres and Challenger. This sale further cements CBRE’s reputation for facilitating high-profile real estate transactions in the competitive retail market.

The Karratha City shopping centre, a single-level sub-regional complex, is situated approximately 1,250 km north of Perth. It boasts a variety of prominent retailers, including Kmart, The Reject Shop, Karratha Furniture & Bedding, Retravision, and Red Dot.

Additionally, the centre houses 51 specialty stores and kiosks, making it a key retail destination in the region.

This acquisition not only enhances Fawkner’s retail holdings but also highlights the continued growth and investment in regional retail centres. The addition of Karratha City to Fawkner’s portfolio underscores the attractiveness of well-located, essential services-oriented retail assets.

As Fawkner Property continues to expand its footprint in the Australian retail market, the Karratha City acquisition represents a significant milestone in their growth strategy, reflecting the ongoing demand for robust retail assets in strategic locations.

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