Rockingham Central shopping centre sells for $180m to IP Generation

WA’s commercial property sector has had its first major vote of confidence this year with the $180 million sale of half of Rockingham Central shopping centre to Victorian-based IP Generation.

CBRE’s Simon Rooney, head of retail capital markets – Pacific, negotiated the off-market sale of the asset for AMP Capital Shopping Centre Fund.

It is the biggest joint venture for a regional centre since Invesco sold its half of Queensland’s Grand Plaza shopping centre to EG Funds for $215 million about a year ago.

Set in a growth corridor, Rockingham Centre is the has a gross lettable area of 62,204 sqm, anchored by Coles and Woolworths supermarkets, Kmart and Target as well as Ace Cinemas.

Vicinity Centres will retain its half share of the asset.

Mr Rooney said it showed renewed demand for “quality, sub-regional and regional assets with a focus on non-discretionary spending”.

“There is particularly strong interest in assets which offer strategic value-add opportunities,” he said.

AMP purchased the centre in October 2017 from Perpetual Nominees. It paid $305 million as part of the sale of several assets.