Federation Centres (FDC) has purchased Currambine Central shopping centre in Western Australia for $74 million.

The convenience shopping centre is located 30 kilometres to the north of Perth in Currambine and is anchored by a Woolworths supermarket and Dan Murphy’s store, and has 44 specialty retailers.

FDC will also fund an expansion of the centre which is currently in the early stage of construction and will comprise the addition of a fresh food market anchored by a Farmer Jacks supermarket, six new specialty retailers, and an expansion of the existing Grand Cinemas tenancy.

The cost of the expansion, which is expected to be completed by mid 2015, is $20 million. The acquisition and expansion is expected to provide a yield of seven per cent.

“The acquisition of Currambine Central, which was sourced off market, forms part of a broader program to strategically realign the portfolio to continue to deliver sustainable returns to our investors,” Steven Sewell, MD and CEO, said .

The centre was purchased from the private property group, White and Partners, the investment arm of the family-owned, Ray White Group.

FDC has recently purchased the remaining six Retail Direct Property syndicate assets. Other recent additions to the portfolio include a 25 per cent interest in Mt Ommaney shopping centre in Brisban,e which was purchased with a new co-ownership partner; and a 50 per cent interest in Bentons Square in Mornington in Victoria, with an option to acquire the balance in 2016.

“On the development front, the Warnbro Centre redevelopment in WA was completed ahead of schedule and below the initial forecast cost. In addition to the Cranbourne redevelopment, which is under way in Victoria, three further developments now have initial board approvals. By early 2015 all four redevelopments, valued at more than $300 million in total, should be under construction,” Sewell said.

Also, as part of the strategic realignment of the FDC portfolio, three convenience centres have been sold.

In Queensland, the Emerald Village and Emerald Market centres were sold to the same buyer for a total of $33 million, a 5.7 per cent  discount to the combined book value.

In Victoria, the sale of the Warrnambool centre has been agreed for $13.7 million, a 4.0% premium to book value.